H.830

Introduced by Representative Hallowell of Burlington (By Request)

Referred to Committee on

Date:

Subject: Legislature; financial disclosure; filing

Statement of purpose: This bill proposes to require state officers to disclose a statement of financial affairs every calendar year.

AN ACT RELATING TO DISCLOSURE OF FINANCIAL AFFAIRS BY STATE OFFICERS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 2 V.S.A. chapter 22 is added to read:

CHAPTER 22. FINANCIAL DISCLOSURE

§ 751. DEFINITIONS

As used in this chapter:

(1) "State officer" means:

(A) Any elected public officer elected on a statewide basis, excluding public officers elected to the United States Senate and House of Representatives and any person appointed to fill a vacancy for an unexpired term in such elective office and also excluding members of the general assembly.

(B) Any appointed member of a state board, commission, authority or council which functions in a quasi-judicial capacity.

(C) Any officer whose appointment is either made by or subject to the approval of the governor.

§ 752. STATEMENT OF FINANCIAL AFFAIRS

The following individuals shall file a sworn statement of financial affairs with the secretary of state:

(1) members of the general assembly;

(2) state officers.

§ 753. FILING

(a) The statement of financial affairs required by section 752 of this title shall be filed with the secretary of state for the preceding calendar year by no later than March 1 of each year, complete through December 31 of the preceding year, except that an individual appointed to a position listed in section 752 of this title shall file his or her initial statement no later than 21 days after the date of his or her appointment.

(b) The secretary of state may grant a reasonable extension of time for filing a statement of financial affairs for good cause shown.

§ 754. FAILURE TO FILE

(a) The secretary of state shall notify by certified mail each person required to file a statement of financial affairs who fails

to file the statement in a timely manner, completely, or in the form required by the secretary of state. The notice shall specify the type of failure or delinquency and shall advise the person of the penalties for violation of this subsection.

(b) Any person who fails to file the statement or who fails to remedy a deficiency in his or her filing identified by the secretary of state in the notice under subsection (a) of this section in a timely manner shall pay a late filing fee of $25.00 plus $5.00 for each day the statement is late, not to exceed $175.00.

§ 755. FORMS; CONTENTS

(a) The statement of financial affairs required by section 752 of this title shall be filed on a form prescribed by the secretary of state.

(b) The statement shall include the following information for the preceding calendar year:

(1) name, business address, business telephone number, and home address of the filer;

(2) title of the filer's public position;

(3) any other occupations of filer and spouse;

(4) positions held by the filer or his or her spouse in any business, partnership, corporation for profit, or corporation not-for-profit from which the filer receives compensation, and the name of that business, partnership, or corporation;

(5) names and address of all businesses, investments, or securities in which the filer, the filer's spouse, or dependent children has or had at any time during the preceding year an interest of $5,000.00 at fair market value or five percent ownership interest or more;

(6) except as provided in this subdivision, sources of gross income of the filer and his or her spouse, including income from a trust or other financial arrangement, information concerning the source, and the form of the income. The filer need not report the holdings of any trust that was not created directly by the filer, the filer's spouse or dependent children; or the holdings or income of which the filer, the filer's spouse or dependent children have no knowledge;

(7) all positions of a fiduciary nature in a business;

(8) a designation as commercial, residential, or rural, and the location of all real property, other than the filer's primary residence, in which there is an interest of $1,000.00 or more held by the filer, his or her spouse, or children.

(c) Subdivisions (1) - (8) of subsection (b) of this section shall not require disclosure of specific dollar amounts. Subdivision (b)(6) of this section shall not require the disclosure of the names of clients or customers of business entities listed as sources of income.

(d) Nothing in this section shall be construed to require the disclosure of information which is privileged by law.

§ 756. VOTING; PARTICIPATION IN DECISIONS IN OFFICIAL CAPACITY

(a) A state officer shall not intentionally participate in the discussion of a question, vote or make a decision in his or her official capacity on any matter:

(l) in which the state officer or any member of his or her family or the state officer's business associates may derive a direct monetary gain or suffer a direct monetary loss as a result of the vote or decision;

(2) which relates specifically to a business in which the state officer owns or controls an interest of $5,000.00 or more, or an interest of more than five percent.

(b) A state officer may participate in the discussion, vote or decision on a matter of any benefit or detriment which accrues to the state officer as a member of a business, profession, occupation, or other group or to any member of his or her family if the business interest specified in subdivision (a)(2) of this section is of no greater extent than the benefit or detriment which accrues generally to other members of the business, profession, occupation, or other group.

§ 757. LATE FILING

A filer submitting a statement of financial affairs within ten days of the statutory deadline or the deadline authorized by the secretary of state shall be subject to no penalty.

§ 758. EXEMPTION

Disclosure of financial information under this chapter is not required for the following:

(1) a spouse separated from a filer;

(2) a former spouse of a filer;

(3) a gift or loan to or from a family member;

(4) a campaign contribution permitted and reported pursuant to chapter 59 of Title 17; or

(5) a gift or loan from a wholly-owned family business.

§ 759. VERIFICATION OF STATEMENT

Any statement required to be made under any provision of this chapter shall contain or be verified by a written declaration that it is made under the penalties of perjury.

§ 760. PENALTIES; ENFORCEMENT

(a) The attorney general shall enforce the provisions of this chapter, and may bring an action in superior court to ensure compliance and to obtain civil penalties in the amounts described in subsection (b) of this section.

(b) The court may grant temporary and permanent injunctive relief, and may:

(1) enjoin future activities;

(2) order remedial actions to be taken to effect all disclosure required by this chapter;

(3) order reimbursement from any person who caused governmental expenditures for the enforcement of the provisions of this chapter;

(4) levy a civil penalty as provided in this subdivision. A civil penalty of not more than $5,000.00 may be levied for each violation. In addition, in the case of a continuing violation, a penalty of not more than $1,000.00 may be imposed for each day the violation continues.