southwest regional workshop€¦ · distribute funds/dissolve debt 19 unsuccessful candidate: •...
TRANSCRIPT
Southwest Regional Workshop
About the Commission
Public Officials Citizens of Missouri
Lobbyists Individuals
participating in public elections
MEC
Our M ission • Serve the public interest • Assist & educate • Create transparency/accountability • Enforce laws
2014 Statistics (Year End)
Lobbyists
1,113 Registered
PFD
10,149 Filed 81% e-filed
Campaign Finance
2,471 Committees
12,798 Reports Filed
Agenda • Campaign Finance Candidate Checklist Reporting Requirements Common Questions Paid For By Conflict of Interest Takeaways
• Addit ional Resources Personal Financial Disclosure Conflict of Interest Use of Public Funds
Candidate Campaign Finance
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Candidate Checklist
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Declare candidacy with appropriate election authority during filing period
File PFD by due date (if required)
View tutorials & brochures, register with MEC for training Form Committee (select treasurer, open bank account, etc.)
Register Committee (File St. of Committee Organization) File Electronic Filing Agreement (dual filers & local filers that wish to
e-file)
Review reporting calendars & timely file required campaign finance reports
Terminate or update committee after election
PFD Note: If required to file as an annual filer & candidate, only file one PFD but by the ear liest deadline (candidate).
Do I need t o form a commit t ee?
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1) What office are you running for?
2) How much have you spent out of your own pocket (candidate is not accepting contributions from any other source)?
3) Are you accepting money (receiving contributions) from others? If so, how much have you received? How much of the amount received have you spent?
4) Have you received an in-kind contribution (anything of value from themselves or others)? If so, what is the fair market value?
View When to Form & Register a Committee brochure on our website
Candidate Committee must be formed 30 days prior to election date
§130.016 RSMo
Register t he Commit t ee
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File Statement of Committee Organization (or Amended if changing information) within 20 days after forming the committee (or of change) & no later than the deadline for filing the first required disclosure report. File with appropriate election authority
• If required to file with MEC – must file original by mail or in person (fax copies are not accepted)
• If required to file with two election authorities (dual filer) – must file an original with both
Where t o Register
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Type Where t o f i le
MEC f i lers Candidate for statewide office Statewide ballot measure (ex: campaign committee) Statewide political party committee
MEC
(Missouri Ethics Commission)
Dual f i lers: Candidate for:
· State Representative · State Senator · County Clerk · Other county office in county with population over 100,000 · City municipal office in city with population over 100,000 · Partisan Circuit Court Judge · Partisan Associate Circuit Court Judge
Continuing committee (political action/PAC) Local political party committee
MEC &
Local Elect ion
Author it y (County Clerk or Board of Election Commissioners)
Local Filers: Candidate for:
· School, fire, ambulance, or other special purpose district · City municipal office in city with population of 100,000 or less
· County office in county with a population of 100,000 or less (except the County Clerk)
Local ballot measure (ex: campaign committee)
Local
Elect ion Author it y
(County Clerk or Board of Election Commissioners)
Once formed, a committee must register with filing officer(s)
• Depends on the office sought, committee type or type of ballot measure
• Committees that register with MEC file reports electronically and will receive username & password via email
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Examples Required t o form a commit t ee?
Candidate is running for County Commissioner, is accepting no contributions from others and has spent $1,000 or less from his own pocket
Candidate is running for City Mayor in a municipality with a population over 100,000, is accepting no contributions from others and has spent $500 or less from his own pocket
Candidate is running for school board, has accepted $300 from another source, spent that $300 in addition to the $500 spent from his own pocket ($1,100 total activity)
Candidate is an incumbent Alderman running for re-election in a municipality with a population under 100,000, uses signs from past election and gives them fair market value of $300, candidate has also spent $750 from his own pocket ($1,050 total activity)
PAC works with a candidate running for the fire protection board to create mailers, valued at $1,200
No
No, but must file St. of Exemption, etc.
Yes
Yes
Yes
E-f i l ing account
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MEC f i lers & Dual f i lers establish their e-filing account (by filing an Electronic Filing Agreement) when registering the committee and from that point on file their disclosure reports electronically. Local f i lers that choose to e-file using MEC’s e-filing system must establish their e-filing account with MEC (by filing an Electronic Filing Agreement) when registering the committee and from that point on file their disclosure reports electronically.
Fil ing disclosure report s
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Any person(s) required to form a campaign finance committee must disclose campaign finance activity by t imely filing a disclosure report for each reporting period.
• Statement of Limited Activity
• Full Disclosure
View Deadlines & Reminders on our website
Statement of Limit ed Act ivit y
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View St. of Limited Activity brochure on our website
Can file if: Contributions $500 or less Expenditures $500 or less No single contributor contributed > $300
Cannot file for: 2 or more consecutive periods if either
contributions or expenditures > $500 30 Day After report if have debt > $5,000 Any report after the 30 Day After if have debt >
$1,000
Any ctrib rec’d or exp made, made during this time period(s), must be carr ied over and disclosed in next full disclosure report.
Good practice to file at least one full disclosure report per year.
Full Disclosure Report s
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Used for report ing t he receipt s and disbursements of a committee as required by the campaign finance disclosure law
Step 1 – Report Cover Page Step 2 – Contributions & Loans Received Step 3 – Expenditures & Contributions Made Step 4 – Other Supplemental Forms Step 5 – Prior Report Totals Step 6 – Final Review & Submit
Common Report ing Quest ions
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1. What is my t ime per iod covered?
Common Report ing Quest ions
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2. What is considered a cont r ibut ion?
A cont r ibut ion is any payment, gift, loan, advance, deposit or donation of money or anything of value for the purpose of supporting or opposing a candidate or ballot measure.
Contributions can be monetary (in the form of money) or in-kind (in a form other than money).
§130.011 RSMo.
Common Report ing Quest ions
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3. What is an incurred expenditure?
It is an agreement or promise t o pay an expense (even if the candidate has received the good or service).
If made during one reporting period but paid in another must record & report the:
• Date the agreement/promise to pay was made • Amount (may be estimated value) • Name & address of person/vendor • Purpose of expenditure • Mark as “incurred”
TIP: Reported incurred expenditures show as debt
(doesn’t come out of Money on Hand until the expense is actually paid)
Common Report ing Quest ions
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What is an incurred expendit ure? (cont )
When paying an incurred expendit ure…actual payment is made to the person/vendor for the exact amount due and reported as an Expenditure Made
And must also remove t he debt (created by the incurred expenditure in the last reporting period) by…reporting in the Payments on Previously Reported Incurred Expenditures (use the same amount used when reported the incurred expenditure)
Common Report ing Quest ions
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4. What are t he rest r ict ions on using cash?
No contribution of cash > $100 (single contributor) No contributions of cash that total > $100 (per
person per election cycle) No anonymous contribution > $25 (unless through
fund-raiser) No use of cash to pay expense > $50 (petty cash
fund) NOTE: Candidates and Committees should make sure to keep all receipts, etc., documenting any cash activity.
Dist r ibute funds/dissolve debt
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Unsuccessful candidate: • If more money on hand than debt ; must terminate committee
within 30 days of election date • If more debt t han money on hand; can form Debt Service
Committee (must be terminated within 18 months or within 30 days of receiving contribution exceeding amount of debt)
Successful candidate: • Update election information to
continue to receive contributions; • Use committee funds for necessary
& ordinary expenses in connection with duties of office; or
• Terminate the committee
Must file 30-Day After before being sworn-in, (if have exp/ctrib made);
close day before swearing-in.
View After Election (Debt Service) & Terminating a Committee brochures on our website
Terminate Commit t ee
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Commit t ee Terminat ion Statement • File within 10 days of committee’s dissolution • File with appropriate election authority • Report distribution of any surplus funds • Report disposition of any outstanding debts (if debt is forgiven,
obtain signed statement from creditor, even if candidate) • Provide name, mailing address and telephone number of
person responsible for preserving the cmte records and reports (Remember must be kept for 3 years after election/ last report filed & available for inspection by MEC)
• Complete full disclosure report reporting thru the cmte’s date of dissolution
• Close bank account
Can terminate at same time as filing 30 Day after Election Report
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MEC f i lers • File original St of Cmte Org with MEC • E-file committee disclosure reports with MEC
Dual f i lers • File original St of Cmte Org with MEC & LEA • E-file committee disclosure reports with MEC
Local f i lers • File original St of Cmte Org with LEA • File committee disclosure via paper forms with LEA; or may e-file
committee disclosure reports with MEC (Establish e-filing account by filing Electronic Filing Agreement with MEC, filer will receive their username and password via email)
“Paid-for-by” disclaimer
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Personal Financial Disclosure
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Candidate Filers • Due 14 day after close of candidate filing • Late fees & disqualification may apply • New candidate time period - 12 mo. prior to close
of candidate filing • Incumbent candidate time period - Jan 1 of
previous year thru close of candidate filing (only file one per year, due by earliest deadline)
Annual Filers • File for each year (or portion of year) that hold
position • Late fees, penalties may apply • Due by May 1st
• Time period from Jan 1 thru Dec 31 of previous calendar year
Conf l ict of Int erest Prohibited Acts
Conf l ict of Interest Governed by: • Missouri Constitution • Missouri Revised Statutes (§105.450-105.467) • Local ordinances, charters, policies & procedures
Categor ies Nepotism Ch. 105 General Provisions Employment Conducting Business Interest in Proposed Ordinance
Purchasing
Quid Pro Quo Voting
Nepot ism Naming or appoint ing (hir ing) to public office or employment a relative within the 4th degree by blood or marriage (See Relat ionship Chart on website under Conflict of Interest/Publications)
VIOLATION: Automatic forfeiture of office or employment upon violation; legal action may be pursued* to remove the individual from office or employment * by the appropriate prosecuting attorney or disciplinary authority
Exist ing Employees: Do not reappoint or vote on the appointment or employment
Art. VII, Sect 6 – Mo. Constitution Watch for legal issues such as contract work [State v.
Rhoads, 399 S.W.3d 905 (June 4, 2013) Official hires a relative to perform a service]; and terms of office.
Relat ionship Chart
Ch. 105 General Provisions Prohibit s financial gain for self, spouse, or dependent child; &
Addresses receiving additional compensation
Employment Services Conducting business
Recuse f rom vot ing on anything that may directly affect or give special
monetary benefit to you or a family member
Employment Cannot be employed in another capacity by the political subdivision, applies to:
Elected or appointed public officials, in an executive or administrative capacity
Members of the general assembly and statewide elected officials
Members of any legislative or governing body of any political subdivision
Review “1 year af t er” employment rest r ict ions
(can’t attempt to influence decision made by former entity)
Examples: 1. County official cannot also be a county employee 2. Mayor cannot also serve as a city employee in another
capacity 3. School board member cannot also serve as a school
district employee (i.e . paid substitute teacher, school bus driver, etc.)
§105.454, 105.456, 105.458 RSMo
Conduct ing Business Generally, an official may not provide/perform services for, or sell, rent or lease property to, the subdivision in an amount over $500 per transaction or $5,000* per year….
IF have transaction must disclose on PFD (if required by Ordinance)
Public notice & competitive bidding occurred AND the awarded bid (if to the official) is the lowest bid received
*NOTE: Pursuant to §105.456 RSMo, consideration for legislators & statewide elected officials states: “…in excess of $500 per transaction or $1,500 per annum…”
Unless
Interest in Proposed Ordinance
If official has a substantial personal or private interest (see
§105.450 RSMo for definition) in a pending measure, bil l , order or ordinance, must file a written report of the nature of the interest with the clerk or secretary of said governing body before passing upon said measure, bill, order or ordinance
Official is deemed to have met this requirement if he or she filed (or amended) their PFD statement disclosing said interest before passing on same
§105.461 RSMo
Purchasing Public Not ice: Ch. 105 RSMo requires public notice & competitive bidding (for property other than real property)
Also, the law or policy requiring bidding may define what public notice is necessary (eg: advertise in local newspaper)
Bid acceptance: Ch. 105 RSMo, requires the public official’s bid be the lowest , if accepted. (Even if political subdivision adopted ordinance or policy allows acceptance of lowest and best bid)
Official seeking to bid shall have no involvement or knowledge of the purchasing details
Purchasing Cont… Ent it y State law, Local County Ch. 50
City, Town, Village Ch. 71-81
Public Official Ch. 105
Subdivision Own purchasing policy
Most purchasing policies require: Bid requirement $ threshold Public notice of the bid specifications & bid consideration criteria Sealing of bids Acceptance of lowest (if public official) or lowest & best bid
Vot ing Official or employee (serving in a executive or administrative capacity) may not part icipate in any mat ter (directly or indirectly) to attempt to influence a decision of the subdivision, when he or she knows the result of such decision may be t he acceptance of:
• the performance of a service or • the sale, rental, or lease of property…
…to that subdivision for consideration (in excess of $500 per transaction or $5,000* per annum) to self, spouse, dependent child, or associated business, unless public notice provided, competitive bidding and the bid accepted is the lowest received.
§105.454 RSMo (*NOTE: Pursuant to §105.456 RSMo, consideration for legislators & statewide elected officials states: “…in excess of $500 per transaction or $1,500 per annum…”)
References – State Law Mo. Law Polit ical Subdivision Chapters 26–30 State Executive Branch Chapters 46–70 Counties, Townships, Political
Subdivisions Chapters 71–100 Cities, Towns, Villages Chapter 190 Emergency Services Chapters 347–360: Corporations, Associations,
Partnerships, Public Bodies (e.g. Industrial Development Corporations under Chapter 349)
Chapters 620-680 Other state executive departments
Use of Public Funds
Use of Public Funds
Prohibit ed to advocate, support or oppose ballot measure or candidate
Allowed for making public appearances and issuing press releases concerning ballot measures
§115.646 RSMo & AG Opinion 54-90
Examples: Office copiers, faxes, paper Office computers, printers
General Rule of Common Sense
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View Advisory Opinions #1996.04.126 & 1997.03.123. on our website. Also, refer to recent MEC decisions.
Remember…always include proper ‘paid-for-by’ disclosure on any printed material related to a ballot measure or candidate.
Employees should not engage in polit ical act ivit y…
While at work
With public funds
With public resources
“Paid-for-by” disclaimer
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Advisory Opinions Number Summary of opinion 1996.04.126 It is a violation of Section 115.646 for an
individual to display campaign sign on a personal vehicle when mileage is reimbursed by county or state (while not clear from the opinion, the vehicle was used full-time for public business).
1996.03.123 School district may not use their postal permit to promote bond issue.
NOTE: The commission receives complaints/ issues orders regarding violations of 115.646 RSMo. (Use of Public Funds)
Out reach & Educat ion
Follow us on Twitter @MOEthics
Website Candidate Central Publications &
FAQS Deadlines &
Reminders MEC quarterly
e-newsletter MEC Highlights! Tutorials Webinars In-person trainings E-filing Help &
Hints
Take advantage of our resources & training!
MEC Wrap-up Missouri Ethics Commission
Takeaways • Form candidate committee 30 days prior to election • St. of Committee Organization – must f i le on paper, submit
to proper filing entities • Bank account should be held in the same name as
committee • Time period covered begins day af t er last report ended • Loan is a contribution, but can be paid back to the lender • Incurred expenditure is a promise t o pay • If unsuccessful, must t erminate committee
Addit ional Resources
PFD Personal Financial Disclosure
Personal Financial Disclosure Purpose – a statement, completed & filed by a
required filer, to provide t he public informat ion about a public official’s, employee’s or candidate’s financial interests
Historically, used to disclose any potential conflicts of interest by a public official/employee
A polit ical subdivision includes sub districts or special districts of the state
Examples: county, city, town, village, township, school district, library district, public water supply district, road district, fire protection district, ambulance district, hospital district, health center, nursing home district, or other
district formed (pursuant to Mo. Law) to provide limited, specific services.
Required PFD f i lers
§105.483 RSMo
Subdivisions with Annual Operating Budget (AOB) over $1 million, wit h no ordinance or resolution
Each Elected Official Candidates for elected office (ex: State Rep/Sen, Judge, County
Official, School Board, Fire Board, City Council, etc.)
Chief Administrative Officer (CAO) Chief Purchasing Officer (CPO) General Counsel (full-time)
Those authorized to promulgate or adopt rules & regulations
If subdivision’s AOB is $1 million or under, PFD is not required to be filed with MEC (unless the subdivision has an ordinance)
Conf l ict of Interest Ordinance
Each political subdivision has the option of adopting its own method of disclosing conflicts of interest & PFD
Adopt biennially (every other year) by Sept 15th Send certified copy to MEC within 10 days of adoption View sample ordinance on our website
§105.485.4 RSMo
Do you want your subdivision to be able to assess penalt ies for late/non-filing?
Include in Ordinance ?
Required PFD f i lers Subdivisions with AOB over $1 million, wit h adopted ordinance or resolution
Chief Administrative Officer (CAO) Chief Purchasing Officer (CPO) Other designated officials & employees A candidate, public official or their relative (w/in 1st
degree by blood or marriage) who has conducted business or owns substantial interest in a business that has conducted business with the political subdivision in excess of $500 per transaction
§105.483 RSMo
View Guide to PFD booklet &/or Sample Ordinance on our website
PFD Filers Overview
Which version?
Who has t o f i le?
Ordinance?
AOB > $1 mil l ion
No ordinance
All elected officials, designated employees &
candidates
Long form
Yes, adopted & on file w/MEC
CAO, CPO, other designated, &
IF have trans >$500
Short form
PFD Forms & Fil ing
Long Form Personal Financial Disclosure Statement
or
Short Form Financial Disclosure Statement for Political Subdivision
• Electronically filed – 5:00 pm on the due date • Hand-delivered – 5:00 pm on the due date • Mailed - Post-marked before due date
Filing Deadlines Long Form requires disclosure (not amounts) of employer, investments,
property, financial holdings, etc.
PFD Forms & Fil ing (cont .) Long forms are generally filed by all officials
unless the subdivision has an ordinance or resolution;
Most ordinances only require disclosure IF the filer had business transaction (unless Chief Administrative Officer (CAO), Chief Purchasing Officer (CPO) who are always required to file)
If ordinance adopted: Clerks only to submit names of CAO, CPO and filers that actually had a business transaction with the subdivision
Penalt ies
§105.492 & 105.963.3 RSMo
MEC Penalt y if PFD not f i led by due date for…
Candidates All candidates required to file
14 day deadline - $10 per day late fee thereafter
21 day deadline – late fees, disqualified as candidate
Required Filers Annual Filer $10 per day late fee & compensation withheld
Persist after 30 days of notice, $100 per day (up to $6,000) & suspension from office
Newly appointed or employed
$10 per day late fee & compensation withheld Persist after 30 days of notice, $100 per day (up
to $6,000) & suspension from office
DISCLAIMER: If the subdivision has a conflict of interest ordinance on file with MEC, & filing deadlines are not met, penalties (if any) are assessed by the political subdivision according to its’ ordinance.
PFD Tips & Reminders
Fil ing Info • Include info for self, spouse and any dependent child(ren) • Unless spouse is also required to file because of a position
they hold, then only disclose spouse’s name
Fi le w/ MEC • File original PFD with MEC (unless sitting Judge) • Send copy to political subdivision if it has an ordinance
• Candidates must amend their PFD, if there are any changes in financial interests, no later than the close of business on the Monday before the general election
• If become candidate after certification date, must file PFD within 14 days of nomination
Candidates