HOUSE BILL NO. 5255

A bill to regulate political activity; to require candidates for the state board of education to file financial reports; to prescribe the powers and duties of certain state officers and agencies; to impose fees; to prescribe penalties and civil sanctions; and to provide remedies.

The people of the state of michigan enact:

Sec. 1. This act may be cited as the "candidate for the state board of education financial disclosure act".

Sec. 2. As used in this act:

(a) "Beneficial interest" includes, but is not limited to, the interest in a trust of a qualified trust beneficiary or a trust beneficiary as those terms are defined in section 7103 of the estates and protected individuals code, 1998 PA 386, MCL 700.7103.

(b) "Blind trust" means a qualified blind trust or qualified diversified trust as those terms are defined in 5 CFR 2634.403.

(c) "Candidate" means that term as defined in section 3 of the Michigan campaign finance act, 1976 PA 388, MCL 169.203.

(d) "Candidate for office" means a candidate for the office of member of the state board of education.

(e) "Dependent" means an individual claimed by the candidate for office or the candidate for office's spouse as a dependent for federal income tax purposes.

(f) "Earned income" means salaries, wages, tips, bonuses, commissions, or other compensation or net earnings from self-employment for the taxable year.

(g) "Gift" means that term as defined in section 4 of 1978 PA 472, MCL 4.414.

(h) "Immediate family member" means the spouse or a dependent of the candidate for office.

(i) "Income" means money or any thing of value received, or to be received as a claim on future services, whether in the form of a fee, salary, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or any other form of recompense that is considered income under the internal revenue code of 1986, 26 USC 1 to 9834.

(j) "Liabilities" means what a person owes to another person, including, but not limited to, mortgages or other debts. For purposes of this act, a debt does not include a revolving or unsecured debt that is from a financial institution or the federal government.

(k) "Lobbyist" means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

(l) "Lobbyist agent" means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

(m) "Person" means an individual, partnership, corporation, association, or other legal entity.

(n) "Reporting period" means both of the following:

(i) For the first report required to be filed under section 3, from January 1, 2024 to April 15, 2024.

(ii) For subsequent reports required to be filed under section 3, January 1 to December 31 of the preceding calendar year in which the report is filed.

(o) "Spouse" means an individual who is lawfully married to the candidate for office as described under 26 CFR 301.7701-18.

(p) "Unearned income" means income that is not earned from employment, including, but not limited to, inheritance money, financial prize, unemployment benefits, annuities, stock dividends, deferred compensation, pension, profit sharing, or retirement income.

Sec. 3. (1) An individual who is a candidate for office at any time during a calendar year shall electronically file with the secretary of state a report that meets the requirements of section 4. The report required to be filed under this subsection must first be filed by April 15, 2024 and by May 15 of each year thereafter, or if the candidate for office files a statement of organization for that candidate's candidate committee after May 15 in order to be nominated by a political party at the political party's nominating convention, the report required to be filed under this subsection must be filed no later than 30 days after that candidate files the statement of organization for that candidate's candidate committee. This subsection does not apply to an individual who, under any of the following acts, files a report in the current calendar year:

(a) State board of education financial disclosure act.

(b) Executive office financial disclosure act.

(c) Candidate for executive office financial disclosure act.

(d) State representative financial disclosure act.

(e) Candidate for state representative financial disclosure act.

(f) State senator financial disclosure act.

(g) Candidate for state senator financial disclosure act.

(h) University board member financial disclosure act.

(i) Candidate for university board member financial disclosure act.

(2) If a candidate for office who is required to file a report under this act receives notice from the secretary of state under section 6(1)(g), the candidate for office shall, within 9 business days after receiving the notice, file corrections to the errors or omissions or file the report, as applicable.

Sec. 4. (1) Subject to subsection (4) and except as provided in section 5, a report required under section 3 must include a complete statement of all of the following:

(a) The following information regarding the candidate fo