I have received a summary of the changes to the following sections of the "Comprehensive Governmental Ethics Reform Act of 2006". This act was signed by the Governor and became effective on February 15, 2006.
On Wednesday February 28, 2006, 13 days after this law went into effect, Lloyd Daugherty, a Knoxville radio talk show host informed his listeners that they could contribute $99 without identifying yourself to a campaign. That is not accurate. That was the case on February 14, 2006 and earlier. Check the change below in Section 16 to ensure that you are complying with the state law.
Section 2 - Changes in Campaign Finance Reporting 2-10-105
..candidates for local office will file quarterly statements (within 10 days of 3/31, 6/30, 9/30 and 1/15) in addition to the pre-primary and pre-general election statements. For campaigns that begain prior to January 1 of the year of the election, the candidate files reports semi-anually (January 31 and July 15) instead of anually as required under prior law. Theses provisions also require campaign records to be kept for 2 years instead of 1. In the closing days before an election, candidates must report each person who has donated in excess of $2500. by the end of the next business day following the day of the contribution is received. Prior law required reporting within 72 hours.
Section 3 - Changes in Reporting of Unexpended Campaign Funds 2-10-106
This section requires semi-annual reports (instead of annual reports as under prior law) of unexpended campaign funds until such time as the campaign account is closed.
Section 4 - Content of Campaign Finance Reports 2-10-107
Reports of persons contributing more than $100 to a campaign now MUST include information about the occupation and employer of each contributor. Similar provisions apply to in-kind contributions. These provisions require the treasurer or candidate to use "best efforts" to gather such information. "Best Efforst" is defined to include mailing notice to the contibutor that the information is needed and taaking such other actions as defined by rule of the registry of election finance. The section also requires more detail on reports of expenditures. It provides that "reimbursement," Credit card purchase," "othe" and "campaign expense" are not acceptable descriptions of the purpose of an expenditure. The law also requires more detailed reporting on credit card expenditures.
Section 6 - Penalities abd Enforcement, Election Commission 2-10-110 and 2-10-111
This section deletes language from 2-10-110 that allowed a local administrator of elections to impose a civil penalty for violation of reporting requirements and enacts new language in 2-10-111 to require the county election commission to file a report with the registry of election finance that all campaign finance reports in an election were filed timely or else list all who failed to report timely.
Section 8 - Unexpended Campaign Balances and Prohibted Expenditures 2-10-114
This section adds provisions that allow giving funds to an institution of public or private education for the purpose of supplmenting the funds of existing scholarship trust or program. This section also limits uses of campaign funds to "contributions" and "expenditures" instead of merely prohibting use for personal or non-political purposes as under prior law. This act specificaaly prohibted expenditures, including residential or household expenses, mortgages, rent or utility payments, funeral or burial expenses, clothing, tution, dues to a club, salary to family members, admission to events, personal grooming expenses, and paying fines for campaign or ethics violations.
Section 16 - Limits on Cash Contributions
This section provides that no person shall make cash contributions to any candidate or PAC with respect to any election which, in the aggregate, exceed $50. The act also prohibits PAC"s from making any cash contributions. These provisions apply to both state and local candidates.
Candidates should maintain a list of all contributors, it was explained to me that if the registry request that as a candidate you must on request show your list, thus prohibting a candidate from having an individual give 49 $50 contributions.
Section 29 - Modification of Consulting Services Prohibition 2-10-122
This section amends the consulting fee prohibition passed last year to clarify that the consulting prohibition applies to the government represented by the official. Language exempting representation by a licensed attorney is eliminated.
Section 37 - Filing of Conflict of Interest Disclosure Statements (effective October 1)
These provisions shift the office where one files conflict of interest disclosure statements from county election commissions to the state ethics commission for local officials.
Section 42 - Forfeiture of Retirement Benefits
This section provides that, as condition of election, an official is deemed to consent to the forfeiture of retirement benefits if convicted of a felony related to malfeasance in office. This section applies to both state and local elected officials.
Section 49 - Mandate of Adoption of Local Government Ethical Standards
This section mandates that governing bodies of counties and municipalities adopt local ethical standards by June 30, 2007. The standards should relate to regulations dealing with disclosure and/or limits on gifts and the disclosure of conflicts of interests. The standards do not include personnel, employment or operational regulations of local government offices. Standards apply broadly to include boards, commissions, authorities, corporations or other instrumentalities of a county. The University of Tennessee County Technicial Assistance Service and Municipal Technicial Advisory Service are directed to draft and distribute model policies to local governments to provide guidance and direction. Policies adopted by a local government are filed with the ethics commission, or, in the alternative, the local government files a statement that it has adopted a CTAS or MTAS model policy. Enforcement of the new standards remains as provided under current law. Failur to adopt standards by a local governing body subject its members to ouster.
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