SENATE BILL No. 1326

 

 

May 20, 2008, Introduced by Senator SCHAUER and referred to the Committee on Campaign and Election Oversight.

 

 

 

     A bill to regulate political activity; to regulate certain

 

candidates and state officials; to require certain financial

 

statements and reports; to prescribe the powers and duties of

 

certain state and local governmental 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 shall be known and may be cited as the

 

"public financial disclosure law".

 

    Sec. 2. As used in this act:

 

    (a) "Broker" means that term as defined in section 3 of

 

title I of the securities and exchange act of 1934, 15 USC

 


78c(a)(4).

 

    (b) "Candidate" means that term as defined in section 3 of

 

the Michigan campaign finance act, 1976 PA 388, MCL 169.203.

 

    (c) "Candidate for state office" means a candidate for any

 

of the following offices:

 

    (i) Governor.

 

    (ii) Lieutenant governor.

 

    (iii) Secretary of state.

 

    (iv) Attorney general.

 

    (v) State senator.

 

    (vi) State representative.

 

    (vii) Member of the state board of education.

 

    (viii) Justice of the supreme court or judge of a court of

 

record.

 

    (ix) Regent of the university of Michigan, member of the

 

board of trustees of Michigan state university, or member of the

 

board of governors of Wayne state university.

 

    (d) "Charitable organization" means that term as defined

 

under section 2 of the charitable organizations and

 

solicitations act, 1975 PA 169, MCL 400.272.

 

    (e) "Gift" means that term as defined in section 4 of 1978

 

PA 472, MCL 4.414, with the threshold value adjusted as provided

 

in section 19a of 1978 PA 472, MCL 4.429a.

 

    (f) "Immediate family member" means a child residing in the

 

individual's household, a spouse of the individual, or a person

 

claimed by the individual or the individual's spouse as a

 

dependent for federal income tax purposes.

 


    (g) "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

 

other form of recompense that is considered income under the

 

internal revenue code, 26 USC 1 to 9833.

 

    (h) "Interested party" means an individual required to file

 

a report under this act or an immediate family member of the

 

individual.

 

    (i) "Investment advisor" includes a person generally

 

involved as an investment advisor in the management or control

 

of trusts.

 

    (j) "Principal residence" means that term as defined under

 

section 7dd of the general property tax act, 1893 PA 206, MCL

 

211.7dd.

 

    (k) "Qualified blind trust" means either of the following:

 

    (i) A trust as to which an interested party has a beneficial

 

interest in the principal or income, and that meets all of the

 

following requirements:

 

    (A) The trustee of the trust and any other entity designated

 

in the trust instrument to perform fiduciary duties is a

 

financial institution, an attorney at law, a certified public

 

accountant, a broker, or an investment advisor who is

 

independent of and not associated with an interested party so

 

that the trustee or other person cannot be controlled or

 

influenced in the administration of the trust by an interested

 

party, is not and has not been an employee of or affiliated with

 


an interested party, is not a partner of or involved in a joint

 

venture or other investment with an interested party, and is not

 

a relative of an interested party.

 

    (B) Each officer or employee of a trustee or other entity

 

who is involved in the management or control of the trust is

 

independent of and not associated with any interested party so

 

that the officer or employee cannot be controlled or influenced

 

in the administration of the trust by an interested party, is

 

not a partner of or involved in a joint venture or other

 

investment with an interested party, and is not a relative of an

 

interested party.

 

    (C) Each asset transferred to the trust by an interested

 

party is free of any restriction with respect to its transfer or

 

sale.

 

    (D) The instrument that created the trust provides for all

 

of the following:

 

    (I) Except as provided in (III), the trustee, in exercising

 

his or her authority and discretion to manage and control the

 

assets of the trust, shall not consult or notify an interested

 

party.

 

    (II) The trust shall not contain an asset that an interested

 

party is prohibited by law or regulation from holding.

 

    (III) The trustee shall promptly notify the individual

 

required to file a report under this act and the secretary of

 

state when an asset transferred to the trust by an interested

 

party is disposed of and when the value of such an asset becomes

 

less than $1,000.00.

 


    (IV) The trust tax return shall be prepared by the trustee

 

or a designee of the trustee and the return and any information

 

relating to the return, other than the trust income summarized

 

in appropriate categories necessary to complete the interested

 

party's tax return, shall not be disclosed to an interested

 

party.

 

    (V) An interested party shall not receive a report on the

 

holdings and sources of income of the trust, except a report at

 

the end of each calendar quarter with respect to the total

 

cash value of the interest of the interested party in the trust

 

or the net income or loss of the trust and a report necessary to

 

enable the interested party to complete an individual tax return

 

required by law or to provide the information required by

 

section 4(1)(b), and that an allowed report shall not identify

 

any specific asset or holding of the trust.

 

    (VI) Except for a communication that solely consists of a

 

request for distribution of cash or other unspecified assets of

 

the trust, there shall be no direct or indirect communication

 

between the trustee and an interested party with respect to the

 

trust unless the communication is in writing and relates only to

 

the general financial interest and needs of the interested

 

party, including, but not limited to, an interest in maximizing

 

income or long-term capital gain; the notification of the

 

trustee of a law or regulation subsequently applicable to the

 

individual required to file a report under this act that

 

prohibits the interested party from holding an asset, which

 

notification directs that the asset not be held by the trust; or

 


directions to the trustee to sell all of an asset initially

 

placed in the trust by an interested party that in the

 

determination of the individual required to file a report under

 

this act creates a conflict of interest or the appearance of a

 

conflict of interest due to the subsequent assumption of duties

 

by the individual. This provision does not require any

 

communication between an interested party and a trustee.

 

    (VII) An interested party shall not attempt to obtain

 

information with respect to the holdings of the trust,

 

including, but not limited to, obtaining a copy of a trust tax

 

return or any information relating to the tax return, except as

 

authorized in this sub-subparagraph.

 

    (ii) A trust that is not a blind trust under subparagraph (i)

 

if all of the following apply:

 

    (A) The instrument that created the trust is amended to

 

satisfy the definition of a qualified blind trust under

 

subparagraph (i), or if the instrument does not permit

 

amendments, the trustee, the individual required to file a

 

report under section 3, and every other interested party agree

 

in writing that the trust shall be administered in accordance

 

with the requirements for a qualified blind trust under

 

subparagraph (i) and the trustee of the trust meets the

 

requirements of subparagraph (i)(A). A parent or guardian of an

 

interested party who is a dependent child may execute an

 

agreement under this subparagraph on behalf of the child.

 

    (B) A copy of the instrument that created the trust,

 

excluding testamentary provisions, a copy of an agreement under

 


sub-subparagraph (A), and a list of the assets held by the trust

 

at the time of qualification as a qualified blind trust,

 

including the category of value of each asset as determined

 

under section 4(3), are filed with the secretary of state.

 

    (l) "Secretary of state" means the secretary of state or the

 

designee of the secretary of state.

 

    (m) "State official" means a holder of an office listed in

 

subdivision (c).

 

    Sec. 3. (1) An individual who was a state official any time

 

during a calendar year shall file with the secretary of state by

 

May 1 of the following year a report that meets the requirements

 

of section 4. This subsection does not apply if the individual

 

was a state official only on the first day of the calendar year.

 

    (2) An individual who is a candidate for state office and

 

has not already filed a report under subsection (1) covering the

 

preceding calendar year shall file with the secretary of state a

 

report that meets the requirements of section 4 within 30 days

 

after the earliest of the following dates, but not later than 11

 

days before the first election at which the individual's name

 

appears on the ballot as a candidate following that date:

 

    (a) If the individual files a fee, affidavit of incumbency,

 

or nominating petition for the state office, the deadline for

 

filing the fee, affidavit of incumbency, or nominating petition

 

established by the Michigan election law, 1954 PA 116, MCL 168.1

 

to 168.992.

 

    (b) If the individual is nominated at a political party

 

caucus or convention, the deadline for holding the caucus or

 


convention established by the Michigan election law, 1954 PA

 

116, MCL 168.1 to 168.992.

 

    (c) The date on which the individual first receives a

 

contribution, makes an expenditure, or gives consent for another

 

person to receive a contribution or make an expenditure with a

 

view to bringing about the individual's nomination or election

 

to a state office.

 

    (d) The date on which the individual forms a candidate

 

committee as a candidate for state office under section 21 of

 

the Michigan campaign finance act, 1976 PA 388, MCL 169.221.

 

    (3) An individual who is a candidate for the office of

 

governor shall file with the secretary of state on June 15 of

 

the year in which the election for the office of governor will

 

be held a copy of the individual's federal tax returns for the 3

 

preceding calendar years. A social security number on a tax

 

return filed under this subsection may be redacted.

 

    Sec. 4. (1) Except as provided in section 5, a report

 

required by section 3 shall include a complete statement of all

 

of the following:

 

    (a) The full name, address, and occupation of, and the state

 

office held or sought by, the individual filing the report.

 

    (b) Both of the following, as applicable:

 

    (i) Each source, type, and amount or value of income received

 

during the preceding calendar year aggregating $200.00 or more

 

in value, excluding both of the following:

 

    (A) Income from the individual's position as a state

 

officer.

 


    (B) Income described in subdivision (d).

 

    (ii) Each source of income earned by a spouse of the

 

individual during the preceding calendar year aggregating

 

$1,000.00 or more in value. If the spouse is self-employed in

 

business or a profession, only the nature of the business or

 

profession is required to be reported under this subparagraph.

 

    (c) Both of the following, as applicable:

 

    (i) Each source, recipient, date, and amount of a payment

 

made to a charitable organization in lieu of honoraria payable

 

to the individual during the preceding calendar year.

 

    (ii) The source and amount of any honoraria received by the

 

spouse of the individual during the preceding calendar year.

 

    (d) Both of the following, as applicable:

 

    (i) Each source of dividend, rent, interest, and capital

 

gains income in an amount or with a value of $200.00 or more

 

received by the individual during the preceding calendar year,

 

and the type and category of value of the income.

 

    (ii) Each source of dividend, rent, interest, and capital

 

gains income in an amount or with a value of $200.00 or more

 

received by an immediate family member of the individual during

 

the preceding calendar year and the type and category of value

 

of the income.

 

    (e) The source, a brief description, and the value of each

 

gift received by the individual or an immediate family member of

 

the individual during the previous calendar year. A gift

 

received when the individual was not a state officer need not be

 

reported under this subdivision.

 


    (f) Subject to subsection (4), both of the following, as

 

applicable:

 

    (i) The identity and category of value of any interest in

 

property held by the individual during the preceding calendar

 

year in a trade or business, or for investment or the production

 

of income, with a fair market value of $1,000.00 or more as of

 

December 31 of the preceding calendar year, excluding both of

 

the following:

 

    (A) A personal liability owed to the individual by a spouse

 

or by a parent, brother, sister, or child of the individual or

 

of the individual's spouse.

 

    (B) A deposit of the individual in a personal savings

 

account aggregating $5,000.00 or less. As used in this sub-

 

subparagraph, "personal savings account" includes a certificate

 

of deposit or any other form of deposit with a bank, savings and

 

loan association, credit union, or similar financial

 

institution.

 

    (ii) The identity and category of value of any interest in

 

property held by an immediate family member of the individual

 

during the preceding calendar year in a trade or business, or

 

for investment or the production of income, with a fair market

 

value of $1,000.00 or more as of December 31 of the preceding

 

calendar year. The following interests in property are not

 

required to be reported under this subparagraph:

 

    (A) A personal liability owed to the immediate family member

 

by a spouse or by a parent, brother, sister, or child of the

 

immediate family member or of the immediate family member's

 


spouse.

 

    (B) A deposit of the immediate family member in a personal

 

savings account aggregating $5,000.00 or less.

 

    (C) An interest as to which the individual certifies that

 

all of the following are true:

 

    (I) The interest of the immediate family member is the sole

 

financial interest or responsibility of the immediate family

 

member.

 

    (II) The interest was and is not in any way derived from the

 

income, assets, or activities of the individual.

 

    (III) The individual neither derives nor expects to derive

 

any financial or economic benefit from the interest.

 

    (IV) Other than as stated in this sub-subparagraph, the

 

individual has no knowledge of the interest.

 

    (g) Both of the following, as applicable:

 

    (i) The identity and category of value of the total

 

liabilities owed by the individual to a creditor other than a

 

spouse or a parent, brother, sister, or child of the individual

 

or of the individual's spouse if the liabilities totaled

 

$10,000.00 or more at any time during the preceding calendar

 

year. The following liabilities are not required to be reported

 

under this subparagraph:

 

    (A) A mortgage secured by real property that is the

 

principal residence of the individual or the individual's

 

spouse.

 

    (B) A loan secured by a personal motor vehicle, household

 

furniture, or appliance that does not exceed the purchase price

 


of the security.

 

    (C) A revolving charge account with an outstanding liability

 

of less than $10,000.00 at the end of the preceding calendar

 

year.

 

    (ii) The identity and category of value of the total

 

liabilities owed by an immediate family member of the individual

 

to a creditor other than a spouse or a parent, brother, sister,

 

or child of the immediate family member or of the immediate

 

family member's spouse, if the liabilities totaled $10,000.00 or

 

more at any time during the preceding calendar year. The

 

following liabilities are not required to be reported under this

 

subparagraph:

 

    (A) A mortgage secured by real property that is the

 

principal residence of the immediate family member or the

 

immediate family member's spouse.

 

    (B) A loan secured by a personal motor vehicle, household

 

furniture, or appliance that does not exceed the purchase price

 

of the security.

 

    (C) A revolving charge account with an outstanding liability

 

of less than $10,000.00 at the end of the preceding calendar

 

year.

 

    (D) A liability as to which the individual certifies that

 

all of the following are true:

 

    (I) The liability of the immediate family member is the sole

 

financial interest or responsibility of the immediate family

 

member.

 

    (II) The liability was and is not in any way derived from

 


the income, assets, or activities of the individual.

 

    (III) The individual neither derives nor expects to derive

 

any financial or economic benefit from the liability.

 

    (IV) Other than as stated in this sub-subparagraph, the

 

individual has no knowledge of the liability.

 

    (h) Both of the following as applicable:

 

    (i) A brief description, the date, and the category of value

 

of any purchase, sale, or exchange by the individual of real

 

property, other than property used solely as a principal

 

residence, with a value of $1,000.00 or more during the

 

preceding calendar year. This subparagraph does not require the

 

reporting of a transaction that is solely between the individual

 

and his or her spouse or dependent children.

 

    (ii) A brief description, the date, and the category of value

 

of any purchase, sale, or exchange by an immediate family member

 

of the individual of real property, other than property used

 

solely as a principal residence, with a value of $1,000.00 or

 

more during the preceding calendar year. This subparagraph does

 

not require the reporting of the following transactions:

 

    (A) A transaction that is solely between the immediate

 

family member and his or her spouse or dependent children.

 

    (B) A transaction as to which the individual certifies that

 

all of the following are true:

 

    (I) The property interest of the immediate family member is

 

the sole financial interest or responsibility of the immediate

 

family member.

 

    (II) The property interest was and is not in any way derived

 


from the income, assets, or activities of the individual.

 

    (III) The individual neither derives nor expects to derive

 

any financial or economic benefit from the property interest.

 

    (IV) Other than as stated in this sub-subparagraph, the

 

individual has no knowledge of the property interest.

 

    (i) A brief description, the date, and the category of value

 

of any purchase, sale, or exchange of stocks, bonds, commodities

 

futures, or other form of securities of $1,000.00 or more during

 

the preceding calendar year. This subdivision does not require

 

the reporting of a transaction that is solely between the

 

reporting individual and his or her spouse or dependent

 

children.

 

    (j) The identity of all positions held by the individual as

 

an officer, director, member, trustee, partner, proprietor,

 

representative, employee, or consultant of a corporation,

 

limited liability company, partnership, limited partnership,

 

limited liability partnership, or other business enterprise,

 

nonprofit organization, labor organization, or educational or

 

other institution other than the United States held during the

 

preceding calendar year, or, for the first report filed by an

 

individual, during the 2 preceding calendar years, or held on or

 

before the date of filing during the current calendar year. This

 

subdivision does not require the reporting of a position held in

 

a religious, social, fraternal, or political entity or a

 

position that is solely honorary.

 

    (k) If the report is the individual's first report under

 

this act and if a person, other than this state, paid the

 


individual compensation of $5,000.00 or more in either of the 2

 

preceding calendar years, all of the following:

 

    (i) Each source of the compensation.

 

    (ii) A brief description of the nature of the duties

 

performed or services rendered by the individual for each source

 

of compensation. This subparagraph does not require the

 

reporting of information that is confidential as a result of a

 

privileged relationship, established by law, between the

 

individual and another person. This subparagraph also does not

 

require the reporting of information with respect to a person

 

for whom services were provided by a firm or association of

 

which the individual was a member, partner, or employee unless

 

the individual was directly involved in providing the services.

 

    (l) The date of, parties to, and a description of the terms

 

of any agreement or arrangement with respect to any of the

 

following:

 

    (i) Future employment of the individual by a person other

 

than this state.

 

    (ii) A leave of absence during the individual's term of

 

office.

 

    (iii) Continuation of payments by a former employer other than

 

this state.

 

    (iv) Continued participation in an employee welfare plan

 

maintained by a former employer other than this state.

 

    (m) The category of value of the total interest of the

 

individual in a qualified blind trust.

 

    (2) Except as provided in subsections (5) and (6), an amount

 


or value reported under subsection (1)(d) shall be reported by

 

category as follows:

 

    (a) $1,000.00 or less.

 

    (b) More than $1,000.00 but not more than $2,500.00.

 

    (c) More than $2,500.00 but not more than $5,000.00.

 

    (d) More than $5,000.00 but not more than $15,000.00.

 

    (e) More than $15,000.00 but not more than $50,000.00.

 

    (f) More than $50,000.00 but not more than $100,000.00.

 

    (g) More than $100,000.00 but not more than $1,000,000.00.

 

    (h) More than $l,000,000.00 but not more than $5,000,000.00.

 

    (i) More than $5,000,000.00.

 

    (3) Except as provided in subsections (4), (5), and (6), an

 

amount or value reported under subsection (1)(f), (g), (h), (i),

 

and (m) shall be reported by category as follows:

 

    (a) $15,000.00 or less.

 

    (b) More than $15,000.00 but not more than $50,000.00.

 

    (c) More than $50,000.00 but not more than $100,000.00.

 

    (d) More than $100,000.00 but not more than $250,000.00.

 

    (e) More than $250,000.00 but not more than $500,000.00.

 

    (f) More than $500,000.00 but not more than $1,000,000.00.

 

    (g) More than $1,000,000.00 but not more than $5,000,000.00.

 

    (h) More than $5,000,000.00 but not more than

 

$25,000,000.00.

 

    (i) More than $25,000,000.00 but not more than

 

$50,000,000.00.

 

    (j) More than $50,000,000.00.

 

    (4) For purposes of subsection (1)(f), if the current value

 


of an interest in real property or an interest in a real estate

 

partnership is not ascertainable without an appraisal, an

 

individual may report either the date of purchase and the

 

purchase price of the interest in real property or the state

 

equalized value of the real property. If the current value of

 

any other item required to be reported under subsection (1)(f)

 

is not ascertainable without an appraisal, the individual may

 

list the book value of a corporation whose stock is not publicly

 

traded, the net worth of a business partnership, the equity

 

value of an individually owned business, or, with respect to

 

other holdings, any recognized indication of value. If an

 

individual reports a value in a manner allowed by this

 

subsection, the individual shall include in the report a full

 

and complete description of the method used to determine the

 

value instead of specifying a category of value under subsection

 

(3).

 

    (5) If income, an asset, or a liability of an immediate

 

family member of a reporting individual that is required to be

 

reported under this section has an amount or value greater than

 

$1,000,000.00, the categories under subsections (2) and (3) for

 

amounts or values greater than $1,000,000.00 need not be used.

 

The income, assets, and liabilities need only be categorized as

 

having an amount or value greater than $1,000,000.00. This

 

subsection does not apply to income, assets, or liabilities that

 

are held jointly with the reporting individual.

 

    (6) Instead of specifying the category of the amount or

 

value of an item in a report under this section, an individual

 


may indicate the exact amount or value of the item.

 

    (7) Information required to be reported under this section

 

shall include information with respect to the holdings of and

 

the income from a trust or other financial arrangement from

 

which income is received by, or with respect to which a

 

beneficial interest in principal or income is held by, an

 

individual required to file a report under section 3 or an

 

immediate family member of the individual.

 

    Sec. 5. A report under section 4 may omit any of the

 

following:

 

    (a) Information required to be reported under the Michigan

 

campaign finance act, 1976 PA 388, MCL 169.201 to 169.282.

 

    (b) An item that concerns a spouse who is living separately

 

and apart from the reporting individual with the intention of

 

terminating the marriage or maintaining a legal separation.

 

    (c) An item that concerns income or obligations of the

 

reporting individual arising from dissolution of the

 

individual's marriage or a permanent legal separation from the

 

individual's spouse.

 

    (d) The holdings of or the source of income from the

 

holdings of a qualified blind trust.

 

    (e) The holdings of or the source of income from the

 

holdings of a trust that was not created directly by the

 

reporting individual or an immediate family member of the

 

individual, if the individual and the individual's immediate

 

family member have no knowledge of the holdings or source of

 

income.

 


    (f) Financial interests held by a widely held investment

 

fund, whether the investment fund is a mutual fund, regulated

 

investment company, pension or deferred compensation plan, or

 

other investment fund, if both of the following apply:

 

    (i) The investment fund is publicly traded or the assets of

 

the fund are widely diversified.

 

    (ii) The reporting individual neither exercises control over

 

nor has the ability to exercise control over the financial

 

interests held by the investment fund.

 

    (g) Financial interests in or income derived from a

 

retirement system under title 5 of the United States Code,

 

including, but not limited to, a thrift savings plan under 5 USC

 

8431 to 8440f, or a retirement system maintained by this state

 

for officers or employees of this state.

 

    (h) Benefits received under the social security act, chapter

 

531, 49 Stat. 620.

 

    Sec. 6. (1) An individual required to file a report under

 

section 3 shall file both of the following with the secretary of

 

state within 30 days after a qualified blind trust is

 

established:

 

    (a) A copy of the executed instrument that created the

 

qualified blind trust, not including provisions that relate to

 

the testamentary disposition of the assets of the qualified

 

blind trust.

 

    (b) A list of the assets that were transferred to the

 

qualified blind trust, including the category of value of each

 

asset as determined under section 4.

 


    (2) An individual required to file a report under section 3

 

shall, within 30 days of transferring an asset other than cash

 

to a previously created qualified blind trust, notify the

 

secretary of state of the identity of each asset transferred and

 

the category of value of each asset as determined under section

 

4.

 

    (3) Within 30 days of the dissolution of a qualified blind

 

trust, an individual required to file a report under section 3

 

shall file with the secretary of state a list of the assets of

 

the qualified blind trust at the time of the dissolution and the

 

category of value of each asset as determined under section 4.

 

    (4) A trustee of a qualified blind trust shall not knowingly

 

and willfully, or negligently, do any of the following:

 

    (a) Disclose to an interested party any information with

 

respect to the qualified blind trust that may not be disclosed

 

under this act.

 

    (b) Acquire any asset the ownership of which is prohibited

 

by the instrument that created the qualified blind trust.

 

    (c) Solicit advice from an interested party with respect to

 

the qualified blind trust if the solicitation is prohibited by

 

this act or the instrument that created the qualified blind

 

trust.

 

    (5) An individual required to file a report under section 3

 

shall not knowingly and willfully, or negligently, do any of the

 

following:

 

    (a) Solicit or receive information with respect to a

 

qualified blind trust of which he or she is an interested party

 


that may not be disclosed under this act.

 

    (b) Fail to file information required to be filed by this

 

section.

 

    Sec. 7. The secretary of state shall do all of the

 

following:

 

    (a) Prepare and make available appropriate forms and

 

instructions for the reports and filings required by this act.

 

    (b) Receive reports and filings required by this act.

 

    (c) Do both of the following with respect to a report or

 

filing required to be filed under this act:

 

    (i) As soon as practicable, but not later than the end of the

 

business day on which the report or filing is received, make the

 

report or filing or all of the contents of the report available

 

without charge to the public on the internet at a single website

 

established and maintained by the secretary of state.

 

    (ii) Not later than the third business day following the day

 

on which the report or filing is received, make the report or

 

filing available for public inspection and reproduction during

 

regular business hours.

 

    (d) Promulgate rules and issue declaratory rulings to

 

implement this act pursuant to the administrative procedures act

 

of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

    (e) Conduct investigations as necessary to determine if

 

there is reason to believe a violation of this act occurred.

 

Investigations shall be conducted pursuant to the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

    Sec. 8. (1) A citizen of this state may file a complaint

 


with the secretary of state alleging a violation of this act.

 

The secretary of state, upon receipt of a complaint under this

 

subsection, shall investigate the allegations as provided in

 

section 7.

 

    (2) If the secretary of state believes a violation of this

 

act has occurred, the secretary of state shall initiate an

 

investigation of the potential violation.

 

    (3) Unless the violation was by the attorney general, if the

 

secretary of state, upon investigation, determines that there is

 

reason to believe a violation of this act occurred, the

 

secretary of state shall forward the results of the

 

investigation to the attorney general for enforcement of this

 

act. If the secretary of state, upon investigation, determines

 

that there is reason to believe that the attorney general

 

violated this act, the secretary of state shall forward the

 

results of the investigation to the prosecuting attorney for

 

Ingham county for enforcement of this act.

 

    (4) The attorney general or, if the attorney general is the

 

individual who is alleged to have violated this act, the

 

prosecuting attorney for Ingham county shall enforce this act

 

against an individual who violates this act.

 

    Sec. 9. (1) An individual who fails to file a report as

 

required under this act shall pay a late filing fee not to

 

exceed $10,000.00, determined as follows:

 

    (a) Fifty dollars for each of the first 3 business days that

 

the report remains unfiled.

 

    (b) One hundred dollars for each of the next 7 business days

 


after the first 3 business days that the report remains unfiled.

 

    (c) Two hundred fifty dollars for each business day after

 

the first 10 business days that the report remains unfiled.

 

    (2) An individual required to file a report under this act

 

who knowingly files an incomplete or inaccurate report is guilty

 

of a misdemeanor punishable by imprisonment for not more than 90

 

days or a fine of not more than $1,000.00, or both.

 

    (3) An individual required to file a report under this act

 

who fails to file 2 reports, if both of the reports remain

 

unfiled for more than 30 days, is guilty of a misdemeanor

 

punishable by imprisonment for not more than 90 days or a fine

 

of not more than $1,000.00, or both.

 

    (4) A default in the payment of a fee or civil fine due or

 

ordered under this act, or an installment of the fee or fine,

 

may be remedied by any means available under the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.101 to 600.9947.

 

    Enacting section 1. This act takes effect June 1, 2009.