HOUSE BILL NO. 2037 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE MCGAUGH.
4831H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 105.485, 105.487, and 105.955, RSMo, and to enact in lieu thereof four new sections relating to the Missouri ethics commission, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 105.485, 105.487, and 105.955, RSMo, are repealed and four 2 new sections enacted in lieu thereof, to be known as sections 105.484, 105.485, 105.487, and 3 105.955, to read as follows: 105.484. 1. Before July sixteenth of each calendar year, the governing body of 2 each political subdivision shall submit an attestation to the commission of whether the 3 body’s annual operating budget for the current fiscal year exceeds one million dollars. 4 2. Before December sixteenth of each calendar year, all offices or entities 5 delineated in paragraphs (a) to (h) of subdivision (6) of section 105.450, shall send the 6 commission a list of the names of all officials, appointees, or employees required by 7 statute, or by designation as a decision-making public servant, to file a financial interest 8 statement with the commission including, but not limited to, those required to file under 9 section 105.483. 105.485. 1. Each financial interest statement required by sections 105.483 to 105.492 2 shall be on a form prescribed by the commission and shall be signed and verified by a written 3 declaration that it is made under penalties of perjury; provided, however, the form shall not 4 seek information which is not specifically required by sections 105.483 to 105.492. 5 2. Each person required to file a financial interest statement pursuant to subdivisions 6 (1) to (12) of section 105.483 shall file the following information for himself or herself, his or 7 her spouse and dependent children at any time during the period covered by the statement,
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2037 2
8 whether singularly or collectively; provided, however, that said person, if he or she does not 9 know and his or her spouse will not divulge any information required to be reported by this 10 section concerning the financial interest of his or her spouse, shall state on his or her financial 11 interest statement that he or she has disclosed that information known to him or her and that 12 his or her spouse has refused or failed to provide other information upon his or her bona fide 13 request, and such statement shall be deemed to satisfy the requirements of this section for 14 such financial interest of his or her spouse; and provided further if the spouse of any person 15 required to file a financial interest statement is also required by section 105.483 to file a 16 financial interest statement, the financial interest statement filed by each need not disclose the 17 financial interest of the other, provided that each financial interest statement shall state that 18 the spouse of the person has filed a separate financial interest statement and the name under 19 which the statement was filed: 20 (1) The name and address of each of the employers of such person from whom 21 income of one thousand dollars or more was received during the year covered by the 22 statement; 23 (2) The name and address of each sole proprietorship which he or she owned; the 24 name, address and the general nature of the business conducted of each general partnership 25 and joint venture in which he or she was a partner or participant; the name and address of 26 each partner or coparticipant for each partnership or joint venture unless such names and 27 addresses are filed by the partnership or joint venture with the secretary of state; the name, 28 address and general nature of the business conducted of any closely held corporation or 29 limited partnership in which the person owned ten percent or more of any class of the 30 outstanding stock or limited partners' units; and the name of any publicly traded corporation 31 or limited partnership which is listed on a regulated stock exchange or automated quotation 32 system in which the person owned two percent or more of any class of outstanding stock, 33 limited partnership units or other equity interests; 34 (3) The name and address of any other source not reported pursuant to subdivisions 35 (1) and (2) and subdivisions (4) to (9) of this subsection from which such person received one 36 thousand dollars or more of income during the year covered by the statement, including, but 37 not limited to, any income otherwise required to be reported on any tax return such person is 38 required by law to file; except that only the name of any publicly traded corporation or limited 39 partnership which is listed on a regulated stock exchange or automated quotation system need 40 be reported pursuant to this subdivision; 41 (4) The location by county, the subclassification for property tax assessment 42 purposes, the approximate size and a description of the major improvements and use for each 43 parcel of real property in the state, other than the individual's personal residence, having a fair 44 market value of ten thousand dollars or more in which such person held a vested interest HB 2037 3
45 including a leasehold for a term of ten years or longer, and, if the property was transferred 46 during the year covered by the statement, the name and address of the persons furnishing or 47 receiving consideration for such transfer; 48 (5) The name and address of each entity in which such person owned stock, bonds or 49 other equity interest with a value in excess of ten thousand dollars; except that, if the entity is 50 a corporation listed on a regulated stock exchange, only the name of the corporation need be 51 listed; and provided that any member of any board or commission of the state or any political 52 subdivision who does not receive any compensation for his or her services to the state or 53 political subdivision other than reimbursement for his or her actual expenses or a per diem 54 allowance as prescribed by law for each day of such service need not report interests in 55 publicly traded corporations or limited partnerships which are listed on a regulated stock 56 exchange or automated quotation system pursuant to this subdivision; and provided further 57 that the provisions of this subdivision shall not require reporting of any interest in any 58 qualified plan or annuity pursuant to the Employees' Retirement Income Security Act; 59 (6) The name and address of each corporation for which such person served in the 60 capacity of a director, officer or receiver; 61 (7) The name and address of each not-for-profit corporation and each association, 62 organization, or union, whether incorporated or not, except not-for-profit corporations formed 63 to provide church services, fraternal organizations or service clubs from which the officer or 64 employee draws no remuneration, in which such person was an officer, director, employee or 65 trustee at any time during the year covered by the statement, and for each such organization, a 66 general description of the nature and purpose of the organization; 67 (8) The name and address of each source from which such person received a gift or 68 gifts, or honorarium or honoraria in excess of two hundred dollars in value per source during 69 the year covered by the statement other than gifts from persons within the third degree of 70 consanguinity or affinity of the person filing the financial interest statement. For the purposes 71 of this section, a "gift" shall not be construed to mean political contributions otherwise 72 required to be reported by law or hospitality such as food, beverages or admissions to social, 73 art, or sporting events or the like, or informational material. For the purposes of this section, 74 a "gift" shall include gifts to or by creditors of the individual for the purpose of cancelling, 75 reducing or otherwise forgiving the indebtedness of the individual to that creditor; 76 (9) The lodging and travel expenses provided by any third person for expenses 77 incurred outside the state of Missouri whether by gift or in relation to the duties of office of 78 such official, except that such statement shall not include travel or lodging expenses: 79 (a) Paid in the ordinary course of business for businesses described in subdivisions 80 (1), (2), (5) and (6) of this subsection which are related to the duties of office of such official; 81 or HB 2037 4
82 (b) For which the official may be reimbursed as provided by law; or 83 (c) Paid by persons related by the third degree of consanguinity or affinity to the 84 person filing the statement; or 85 (d) Expenses which are reported by the campaign committee or candidate committee 86 of the person filing the statement pursuant to the provisions of chapter 130; or 87 (e) Paid for purely personal purposes which are not related to the person's official 88 duties by a third person who is not a lobbyist, a lobbyist principal or member, or officer or 89 director of a member, of any association or entity which employs a lobbyist. The statement 90 shall include the name and address of such person who paid the expenses, the date such 91 expenses were incurred, the amount incurred, the location of the travel and lodging, and the 92 nature of the services rendered or reason for the expenses; 93 (10) The assets in any revocable trust of which the individual is the settlor if such 94 assets would otherwise be required to be reported under this section; 95 (11) The name, position and relationship of any relative within the first degree of 96 consanguinity or affinity to any other person who: 97 (a) Is employed by the state of Missouri, by a political subdivision of the state or 98 special district, as defined in section 115.013, of the state of Missouri; 99 (b) Is a lobbyist; or 100 (c) Is a fee agent of the department of revenue; 101 (12) The name and address of each campaign committee, political committee, 102 candidate committee, or continuing committee for which such person or any corporation 103 listed on such person's financial interest statement received payment; and 104 (13) For members of the general assembly or any statewide elected public official, 105 their spouses, and their dependent children, whether any state tax credits were claimed on the 106 member's, spouse's, or dependent child's most recent state income tax return. 107 3. For the purposes of subdivisions (1), (2) and (3) of subsection 2 of this section, an 108 individual shall be deemed to have received a salary from his or her employer or income from 109 any source at the time when he or she shall receive a negotiable instrument whether or not 110 payable at a later date and at the time when under the practice of his or her employer or the 111 terms of an agreement he or she has earned or is entitled to anything of actual value whether 112 or not delivery of the value is deferred or right to it has vested. The term income as used in 113 this section shall have the same meaning as provided in the Internal Revenue Code of 1986, 114 and amendments thereto, as the same may be or becomes effective, at any time or from time 115 to time for the taxable year, provided that income shall not be considered received or earned 116 for purposes of this section from a partnership or sole proprietorship until such income is 117 converted from business to personal use. HB 2037 5
118 4. Each official, officer or employee or candidate of any political subdivision 119 described in subdivision (11) of section 105.483 shall be required to file a financial interest 120 statement as required by subsection 2 of this section, unless the political subdivision 121 [biennially] adopts an ordinance, order or resolution at an open meeting by September 122 fifteenth of the preceding year, which establishes and makes public its own method of 123 disclosing potential conflicts of interest and substantial interests and therefore excludes the 124 political subdivision or district and its officers and employees from the requirements of 125 subsection 2 of this section. Such ordinance, order, or resolution shall remain in effect 126 until the ordinance, order, or resolution is amended or rescinded by the governing body 127 of the political subdivision. A certified copy of the ordinance, order or resolution shall be 128 sent to the commission within ten days of its adoption. The commission shall assist any 129 political subdivision in developing forms to complete the requirements of this subsection. 130 The ordinance, order or resolution shall contain, at a minimum, the following requirements 131 with respect to disclosure of substantial interests: 132 (1) Disclosure in writing of the following described transactions, if any such 133 transactions were engaged in during the calendar year: 134 (a) For such person, and all persons within the first degree of consanguinity or 135 affinity of such person, the date and the identities of the parties to each transaction with a total 136 value in excess of five hundred dollars, if any, that such person had with the political 137 subdivision, other than compensation received as an employee or payment of any tax, fee or 138 penalty due to the political subdivision, and other than transfers for no consideration to the 139 political subdivision; 140 (b) The date and the identities of the parties to each transaction known to the person 141 with a total value in excess of five hundred dollars, if any, that any business entity in which 142 such person had a substantial interest, had with the political subdivision, other than payment 143 of any tax, fee or penalty due to the political subdivision or transactions involving payment 144 for providing utility service to the political subdivision, and other than transfers for no 145 consideration to the political subdivision; 146 (2) The chief administrative officer and chief purchasing officer of such political 147 subdivision shall disclose in writing the information described in subdivisions (1), (2) and (6) 148 of subsection 2 of this section; 149 (3) Disclosure of such other financial interests applicable to officials, officers and 150 employees of the political subdivision, as may be required by the ordinance or resolution; 151 (4) Duplicate disclosure reports made pursuant to this subsection shall be filed with 152 the commission and the governing body of the political subdivision. The clerk of such 153 governing body shall maintain such disclosure reports available for public inspection and 154 copying during normal business hours. HB 2037 6
155 5. The name and employer of dependent children under twenty-one years of age of 156 each person required to file a financial interest form under this section shall be redacted and 157 not made publicly available, upon the written request of such person to the commission. 158 6. Nothing in subsection 5 of this section shall be construed to abate the responsibility 159 of reporting the names and employers of dependent children of each person required to file a 160 financial interest form. 105.487. The financial interest statements shall be filed at the following times, but no 2 person is required to file more than one financial interest statement in any calendar year: 3 (1) Each candidate for elective office, except those candidates for county committee 4 of a political party pursuant to section 115.609 or section 115.611, who is required to file a 5 personal financial disclosure statement shall file a financial interest statement no later than 6 fourteen days after the close of filing at which the candidate seeks nomination or election, and 7 the statement shall be for the twelve months prior to the closing date, except that in the event 8 an individual does not become a candidate until after the date of certification for candidates, 9 the statement shall be filed within fourteen days of the individual's nomination by caucus. An 10 individual required to file a financial interest statement because of the individual's candidacy 11 for office prior to a primary election in accordance with this section is also required to amend 12 such statement no later than the close of business on Monday prior to the general election to 13 reflect any changes in financial interest during the interim. The appropriate election authority 14 shall provide to the candidate at the time of filing for election written notice of the candidate's 15 obligation to file pursuant to sections 105.483 to 105.492 and the candidate shall sign a 16 statement acknowledging receipt of such notice. Political subdivisions, as defined in 17 section 105.450, and the secretary of state shall provide a list of candidates under this 18 subdivision to the commission no later than two business days after the close of 19 candidate filing; 20 (2) Each person appointed to office, except any person elected for county committee 21 of a political party pursuant to section 115.617, and each official or employee described in 22 section 105.483 who is not otherwise covered in this subsection shall file the statement within 23 thirty days of such appointment or employment; 24 (3) Every other person required by sections 105.483 to 105.492 to file a financial 25 interest statement shall file the statement annually not later than the first day of May and the 26 statement shall cover the calendar year ending the immediately preceding December thirty- 27 first; provided that the governor, lieutenant governor, any member of the general assembly or 28 any member of the governing body of a political subdivision may supplement such person's 29 financial interest statement to report additional interests acquired after December thirty-first 30 of the covered year until the date of filing of the financial interest statement; HB 2037 7
31 (4) The deadline for filing any statement required by sections 105.483 to 105.492 32 shall be 5:00 p.m. of the last day designated for filing the statement. When the last day of 33 filing falls on a Saturday or Sunday or on an official state holiday, the deadline for filing is 34 extended to 5:00 p.m. on the next day which is not a Saturday or Sunday or official holiday. 35 Any statement required within a specified time shall be deemed to be timely filed if it