LANSING, Mich. — Michigan is one step closer to having financial disclosure laws on the books after lawmakers introduced bipartisan legislation Tuesday to make Proposal 1 officially state law.
Currently, Michigan ranks 49th in the nation for these kinds of laws— only ahead of Idaho.
State lawmakers have worked to change Michigan’s transparency laws for years, but current legislators say efforts to implement this type of financial disclosure were continuously blocked.
It took Prop 1, which passed in November of 2022 with 66% of the vote, to finally make it happen.
Bill sponsor Sen. Jeremy Moss said during testimony in the Senate Oversight Committee Wednesday morning, "this is a long time coming."
"Our Prop 1 legislation is not an end, but a long overdue beginning to finally implementing transparency laws," Sen. Moss (D-Southfield) added.
"There's no better disinfectant, political disinfectant, than sunshine, so we want to shine a bright light on the finances of state officers and state lawmakers," Rich Studley, one of the co-chairs managing the campaign for Prop 1, said.
He says the legislation meets the basic requirements set forth within the proposal, and explains that the public will be able to look at a report and see things like current assets, sources of income, current employment and any pending promises of employment.
But, Studley maintains that these bills are just the beginning.
"Is it perfect? No. I have never had an opportunity to work on a perfect piece of legislation. Is that good? Yes. Could it be strengthened? Yes," Studley added.
Studley says he’d like to see stronger penalties for bad actors in future legislation. The current penalties range from $25 to $1,000, and Studley says he doesn't know if that's enough to hold people accountable.
He'd also like to see stronger requirements for financial disclosures for the spouses of officials.
Secretary of State Jocelyn Benson agrees with that, saying the current provision includes minimal information that makes it "ineffective." She explains that the current language creates too many loopholes.
State Sen. Mark Huizenga sponsored SB 615 and says, "we shouldn't have secrets here, and we shouldn't be voting on things that create conflict."
As he puts it, having transparent financial disclosure laws is also about exposing any potential conflicts of interest. Just two weeks ago, Sen. Huizenga had to abstain from a bill because he had a perceived conflict of interest.
"I think really the heart of it, what we're trying to do is ensure that the member, the person vote pushing the button, the one voting, is disclosing what their assets and potential conflicts would be," Sen. Huizenga explained.
However, the legislature is facing a tight December 31 deadline. If the legislature fails to meet that deadline, every Michigan resident can file a complaint directly with the state Supreme Court.
But, that timeline is actually even shorter. Democrats previously passed a law to move the date of the state’s presidential primary, and for that to take effect in time to impact the 2024 cycle, the State Legislature must adjourn by November 29 at the latest.
"I think it would be a terrible shame if the legislature [were] to recess early without getting this done properly," Studley said.
The first report would be in April of next year, impacting elected officials like the governor, lieutenant governor, attorney general, secretary of state, state legislators and candidates for office if they're running in an August primary and/or the November General Election.
If passed, SB 613, 614, 615 and 616would be Michigan’s first set of financial disclosure laws on the books.
The Senate Oversight Committee only heard testimony on Wednesday— there was not vote to advance the bills just yet.
Prop 1 also has a second piece that changes the term-limits for elected officials.
However, the change did not require the legislature to be involved, so that piece is already in effect.
