– Financial disclosure/public officer
S1291.........by STENNETT, LANGHORST, KELLY, BURKETT, WERK, BILYEU, SAGNESS
FINANCIAL DISCLOSURE - PUBLIC OFFICERS - Adds to existing law to provide a
duty to file financial disclosure statements by public officers and
candidates; to provide content of the statements; to provide an exception;
to provide application; to provide duties of the Secretary of State; and to
provide criminal and civil penalties.
01/18    Rpt prt - to St Aff
Fifty-ninth Legislature                   Second Regular Session - 2008
BY STENNETT, LANGHORST, KELLY, BURKETT, WERK, BILYEU, SAGNESS
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 AN EXCEPTION,  TO  PROVIDE
8        APPLICATION  AND TO PROVIDE FOR DUTIES OF THE SECRETARY OF STATE; AMENDING
9        CHAPTER 66, TITLE 67, IDAHO  CODE,  BY  THE  ADDITION  OF  A  NEW  SECTION
10        67-6633,  IDAHO CODE, TO PROVIDE CRIMINAL AND CIVIL PENALTIES; AND PROVID-
11        ING AN EFFECTIVE DATE.
12    Be It Enacted by the Legislature of the State of Idaho:
13        SECTION 1.  That Chapter 66, Title 67, Idaho Code, be,  and  the  same  is
14    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
15    ignated as Section 67-6631, Idaho Code, and to read as follows:
16        67-6631.  DEFINITIONS. As used in sections 67-6631 through 67-6633,  Idaho
17    Code, unless the context otherwise requires, the following terms have the fol-
18    lowing meanings:
19        (1)  "Business"  includes  any enterprise, organization, trade, occupation
20    or profession, whether or not operated  as  a  legal  entity  or  for  profit,
21    including any business, trust, corporation, partnership, joint venture or sole
22    proprietorship.
23        (2)  "Candidate"  means  an individual who has taken affirmative action to
24    seek nomination or election to public office. An individual shall be deemed to
25    have taken affirmative action to seek such nomination or  election  to  public
26    office when he first:
27        (a)  Receives  contributions  or  makes  expenditures or reserves space or
28        facilities with intent to promote his candidacy for office; or
29        (b)  Announces publicly or files for office.
30        (3)  "Compensation" means anything of value or advantage, present or  pro-
31    spective, including the forgiveness of debt.
32        (4)  "Controlled  business" means any business in which the public officer
33    or candidate, or spouse of the public officer or candidate, has  an  ownership
34    or  beneficial  interest,  individually  or combined, amounting to more than a
35    fifty percent (50%) interest.
36        (5)  "Dependent 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 ten
39    percent (10%) interest, and which during the preceding calendar year the busi-
40    ness received from a single source more than ten thousand dollars ($10,000) or
41    more than fifty percent (50%) of its gross income.
42        (6)  "Gift" includes any gratuity, special discount,  favor,  hospitality,
43    service,  economic opportunity, loan or other benefit received without equiva-
1    lent consideration,  not provided to  members  of  the  public  at  large  and
2    exceeding a value of fifty dollars ($50.00).
3        (7)  "Public  office"  means  any state office or position, state senator,
4    state representative, justice of the supreme court, and judge of the court  of
5    appeals, that is filled by election.
6        (8)  "Public officer" means the governor, lieutenant governor, state sena-
7    tor, state representative, attorney general, superintendent of public instruc-
8    tion,  secretary  of  state, state controller, state treasurer, justice of the
9    supreme court and a judge of the  court of appeals. Members  of  congress  are
10    not public officers as defined in this subsection.
11        SECTION  2.  That  Chapter  66,  Title 67, Idaho Code, be, and the same is
12    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
14        67-6632.  DUTY  TO  FILE  FINANCIAL  DISCLOSURE  STATEMENT  -- CONTENTS --
15    EXCEPTIONS. (1) In addition to other statements and reports required  by  law,
16    every  public  officer and candidate, as a matter of public record, shall file
17    with the secretary of state, on a form prescribed by the secretary of state, a
18    verified financial disclosure statement  as  provided  by  this  section.  The
19    statement shall disclose:
20        (a)  The name and address of the public officer or candidate, the name and
21        address  of  the  spouse of the public officer or candidate, and all names
22        and addresses under which each does business.
23        (b)  The name and address of each employer and of  each  other  source  of
24        compensation amounting to more than one thousand dollars ($1,000) received
25        during  the preceding calendar year by the public officer or candidate, or
26        spouse of the public officer or candidate in their own names,  or  by  any
27        other  person for the use or benefit of the public officer or candidate or
28        the spouse of the public officer or candidate, a description of  the  ser-
29        vices  for  which  the  compensation  was  received  and the nature of the
30        employer's or source of compensation's business.
31        (c)  For a controlled business, a description of  the  goods  or  services
32        provided  by the business, and if any single source of compensation to the
33        business during the preceding calendar year amounts to more than ten thou-
34        sand dollars ($10,000) and is more than twenty-five percent (25%)  of  the
35        gross income of the business, the disclosure shall also include a descrip-
36        tion  of the goods or services provided to the source of compensation. For
37        a dependent business the statement shall disclose  a  description  of  the
38        goods  or services provided by the business and a description of the goods
39        or services provided to the source of compensation from which the  depend-
40        ent  business  derived  the amount of gross income described in subsection
41        (5) of section 67-6631, Idaho Code. If the source of  compensation  for  a
42        controlled  or  dependent business is a business, the statement shall dis-
43        close a description of the business activities engaged in by the source of
44        compensation.
45        (d)  The names and addresses of all businesses and  trusts  in  which  the
46        public officer or candidate, or spouse of the public officer or candidate,
47        or any other person for the use or benefit of the public officer or candi-
48        date,  or  spouse  of the public officer or candidate, had an ownership or
49        beneficial interest, including stocks in a publicly traded corporation, of
50        over one thousand dollars ($1,000) at any time during the preceding calen-
51        dar year, and the names and addresses of  all  businesses  and  trusts  in
52        which  the public officer or candidate, or spouse of the public officer or
53        candidate, held any office or had a fiduciary  relationship  at  any  time
1        during  the  preceding calendar year, together with the amount or value of
2        the interest and a description of the interest, office or relationship.
3        (e)  All leases of state or political subdivision land or real property or
4        contracts with the state or a political  subdivision  of  the  state,  all
5        Idaho  real  property  interests and real property improvements, including
6        specific location and approximate size, and in which the public officer or
7        candidate, or spouse of the public officer or candidate,  or a  controlled
8        or  dependent  business,  held legal title or a beneficial interest at any
9        time during the preceding calendar year, and the value of any such  inter-
10        est, except that this paragraph does not apply to a real property interest
11        and  improvements  thereon  used  as the primary personal residence of the
12        public officer or candidate. If a public officer or candidate, any  spouse
13        of  a  public officer or candidate, or a controlled or dependent business,
14        acquired or divested any such interest during the preceding calendar year,
15        he shall also disclose that the transaction  was  made  and  the  date  it
16        occurred.  If  the  controlled or dependent business is in the business of
17        dealing in real property interests or improvements,  disclosure  need  not
18        include  individual parcels or transactions as long as the aggregate value
19        and general description of all parcels of such property are reported.
20        (f)  The name and address of each creditor, including federal,  state  and
21        local government tax liability to whom the public officer or candidate, or
22        spouse  of  the  public  officer or candidate in their own names or in the
23        name of any other person, owed a debt of more than  one  thousand  dollars
24        ($1,000)  or  to whom a controlled business or a dependent business owed a
25        debt of more than ten thousand dollars ($10,000) which was also more  than
26        thirty percent (30%) of the total business indebtedness at any time during
27        the  preceding  calendar  year.  This  paragraph shall not be construed to
28        require the disclosure of debts owed by the public officer  or  candidate,
29        or  spouse of the public officer or candidate, resulting from the ordinary
30        conduct of a business other than a controlled or dependent  business.  Nor
31        shall  disclosure be required of credit card transactions, retail install-
32        ment contracts, debts on residences exempt from disclosure under paragraph
33        (e) of this subsection, debts on motor vehicles not  used  for  commercial
34        purposes,  debts secured by cash values on life insurance or debts owed to
35        relatives. It is sufficient disclosure of  a  creditor  if  the  name  and
36        address  of a person to whom payments are made is disclosed. If the public
37        officer or candidate, spouse of the public officer or candidate, or a con-
38        trolled or dependent business, incurred or  discharged  a  debt  which  is
39        reportable  under  this  paragraph during the preceding calendar year, the
40        report shall disclose that the  transaction  was  made  and  the  date  it
41        occurred.
42        (g)  The value, nature and name of each source of any gift, or accumulated
43        gifts  from  a single source, received by the public officer or candidate,
44        or spouse of the public officer or candidate in their own names during the
45        preceding calendar year, or by any other person for the use or benefit  of
46        the public officer or candidate, or spouse of the public officer or candi-
47        date,  except gifts received by will or by virtue of intestate succession,
48        or received by way of distribution from any inter  vivos  or  testamentary
49        trust  established  by  a spouse or by an ancestor, or gifts received from
50        any other member of the household or relatives in  the  second  degree  of
51        consanguinity.  Political campaign contributions shall not be construed as
52        gifts if otherwise publicly reported as political  campaign  contributions
53        as required by law.
54        (h)  A  list  of  all business licenses issued to, held by or in which the
55        public officer or candidate, spouse of the public officer or candidate, or
1        any controlled or dependent business, had an interest at any  time  during
2        the  preceding  calendar year, including the name in which the license was
3        issued, the type of business and its location.
4        (i)  A list of all bonds, together with their value, issued by this  state
5        or  any  political  subdivision  of this state held at any time during the
6        preceding calendar year by the public officer or candidate, or  spouse  of
7        the public officer or candidate, which bonds issued by a single entity had
8        a  value in excess of one thousand dollars ($1,000). If the public officer
9        or candidate, or spouse of the public officer or  candidate,  acquired  or
10        divested any bonds during the preceding calendar year which are reportable
11        under  this paragraph, the fact that the transaction occurred and the date
12        shall also be shown.
13        (2)  If an amount or value is required to be  reported  pursuant  to  this
14    section,  it is sufficient to report whether the amount or value of the equity
15    interest falls within:
16        (a)  Category 1, one thousand dollars  ($1,000)  to  twenty-five  thousand
17        dollars ($25,000).
18        (b)  Category  2,  twenty-five  thousand  dollars ($25,000) to one hundred
19        thousand dollars ($100,000).
20        (c)  Category 3, one hundred thousand dollars ($100,000) or more.
21        (3)  This section does not require the disclosure of any information  that
22    is privileged by law.
23        (4)  The statement required to be filed pursuant to subsection (1) of this
24    section  shall be filed by all persons who qualified as public officers at any
25    time during the preceding calendar year on or before February 15 of each  year
26    and  shall cover the preceding calendar year ending December 31, except that a
27    public officer appointed to fill a vacancy shall, within thirty (30) days fol-
28    lowing his taking of such office, file a financial disclosure statement cover-
29    ing as his annual period the twelve (12) month period  ending  with  the  last
30    full  month  prior to the date of his taking office. All candidates shall file
31    financial disclosure statements within thirty (30) days of first  meeting  the
32    definition  of  "candidate"  as provided in subsection (2) of section 67-6631,
33    Idaho Code, and the statement shall cover as their annual  period  the  twelve
34    (12) month period ending with the last full month prior to the date of meeting
35    such definition.
36        (5)  The  secretary  of  state shall prepare written guidelines, forms and
37    samples for completing the financial disclosure  statement  required  by  this
38    section.  A  copy of the guidelines, forms and samples shall be distributed to
39    each public officer and made available to all candidates.
43        67-6633.  VIOLATION -- PENALTIES. (1) Any public officer or candidate, who
44    knowingly files a materially incomplete financial disclosure statement or  who
45    knowingly  files a false financial disclosure statement is guilty of a  misde-
46    meanor.
47        (2)  Any public officer  or candidate who fails to file a  financial  dis-
48    closure statement or who otherwise violates the provisions of section 67-6632,
49    Idaho  Code,  is subject to a civil penalty of fifty dollars ($50.00) for each
50    day of noncompliance. However, the maximum civil penalty shall not exceed five
51    thousand dollars ($5,000) for any related series of violations. The civil pen-
52    alty shall be deposited in the general fund.
1        SECTION 4.  This act shall be in full force and effect on and after  Janu-
2    ary 1, 2009.
This legislation creates a requirement for certain Idaho elected
officials and candidates to file personal financial disclosure
statements with the Idaho Secretary of State.
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.
Name:  Sen. Clint Stennett, Minority Leader
Sen. David Langhorst, Asst. Minority Leader
Sen. Kate Kelly, Minority Caucus Chair
Sen. Mike Burkett
Sen. Elliot Werk
Sen. Diane Bilyeu
Sen. Dick Sageness
STATEMENT OF PURPOSE/FISCAL NOTE                        S 1291