October 2, 2013, Introduced by Senators SCHUITMAKER and JONES and referred to the Committee on Reforms, Restructuring and Reinventing.
A bill to establish supplemental conflict of interest
standards for members of regulatory bodies in the department of
licensing and regulatory affairs; to require disclosure of certain
interests; to provide grounds for removal of members of regulatory
bodies; to provide a process for raising and determining possible
conflicts of interest; and to provide for voiding certain actions
taken in violation of this act.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) This act shall be known and may be cited as the
"regulatory boards and commissions ethics act".
(2) As used in this act:
(a) "Board" means a board, commission, or committee in the
department that has authority in regulatory actions concerning
private individuals or entities.
(b) "Department" means the department of licensing and
regulatory affairs.
(c) "Immediate family member" means a grandparent, parent,
parent-in-law, stepparent, sibling, spouse, child, or stepchild.
Sec. 2. In addition to any other standard of conduct or
disclosure requirement that may apply to a member or designated
alternate member of a board, each member or designated alternate
shall comply with the standards set forth in this act.
Sec. 3. (1) A board member shall do all of the following:
(a) Disclose to the board and the director of the department
any pecuniary, contractual, business, employment, or personal
interest that the board member may have in a contract, grant, loan,
or regulatory matter before the board. Disclosure is also required
if an immediate family member of a board member is a director,
officer, direct or indirect shareholder, or employee of an entity
under consideration for a contract, grant, or loan or is the
subject of a regulatory action before the board. However, this
subdivision does not require disclosure of a 2% or smaller interest
in a publicly traded company.
(b) Refrain from participating in any discussion, directly or
indirectly, with other board members regarding a matter before the
board if the board member has a direct or indirect interest
described in subdivision (a).
(c) Abstain from voting on any motion or resolution relating
to a matter in which the board member has a direct or indirect
interest described in subdivision (a).
(d) Use state resources, property, and funds under the board
member's official care and control judiciously and solely in
accordance with prescribed constitutional, statutory, and
regulatory procedures and not for personal gain or benefit.
(2) A board member shall refrain from all of the following:
(a) Divulging to an unauthorized person any confidential
information acquired in the course of the member's service on the
board before the time prescribed or authorized for release to the
public.
(b) Representing his or her personal opinion as that of the
board or the department.
(c) Soliciting or accepting a gift or loan of money, goods,
services, or other thing of value for the benefit of a person or
organization other than this state that could reasonably be
expected to influence the manner in which the board member performs
official duties.
(d) Engaging in a business transaction in which the board
member may profit from his or her official position or authority as
a board member or benefit financially from confidential information
that the board member obtained or may obtain incident to the board
membership.
(e) Rendering services for a private or public interest if
that service is incompatible or in conflict with the discharge of
the board member's official duties.
(f) Participating in negotiating or executing contracts,
making loans, granting subsidies, fixing rates, issuing permits or
certificates, or other regulation or supervision relating to a
business entity in which the board member or an immediate family
member of the board member has a pecuniary or personal interest,
other than a 2% or smaller interest in a publicly traded company.
Sec. 4. A contract, grant, or loan that a board enters into
with or awards to a board member or an immediate family member of a
board member with an interest in the matter is adopted in violation
of conflict of interest standards and is voidable at the option of
the department unless the affected board member complies with all
of the following:
(a) Except as expressly permitted by applicable law, the
affected board member has abstained from participating in the
discussion or vote on the matter.
(b) The affected board member promptly disclosed the
pecuniary, contractual, business, employment, or personal interest
in the contract, grant, or loan in the manner required by this act
and other applicable law.
Sec. 5. (1) A board member who fails to disclose an interest
described in section 3(1)(a) is subject to immediate removal from
the board by the governor.
(2) A person who has reason to believe that a board member has
failed to disclose an interest described in section 3(1)(a) or has
an interest that is not required to be disclosed but that would
have a tendency to affect the ability of the member to render an
impartial decision on a matter may request, not later than 1 year
after the board takes any action on the matter, that the board
consider the issue of a conflict of interest as to that matter. The
board members who are not the subject of the potential conflict of
interest shall investigate the matter and decide the issue of
whether or not the board member has an undisclosed interest
described in section 3(1)(a) or has another conflict of interest
sufficient to raise a reasonable doubt as to whether the board
member could render an impartial decision.
(3) If a board determines that a member has an undisclosed
conflict of interest in violation of section 3(1)(a), the member is
subject to immediate removal by the governor. If a board determines
under subsection (2) that the board member has another interest
that is sufficient to raise a reasonable doubt as to whether the
board member could render an impartial decision, any action the
board took regarding the matter in which the board member with a
conflict of interest participated is void unless affirmed by a
majority of the board. The board shall reconsider the action
without the participation of the board member who was found to have
a conflict of interest.
Sec. 6. This act is intended to supplement existing ethics
laws, and if there is a conflict, the following laws prevail:
(a) Section 10 of article IV of the state constitution 1963.
(b) 1978 PA 566, MCL 15.181 to 15.185.
(c) 1968 PA 318, MCL 15.301 to 15.310.
(d) 1968 PA 317, MCL 15.321 to 15.330.
(e) 1973 PA 196, MCL 15.341 to 15.348.