CCR#2/HS/HCS/SCS/SB 16 - This act revises the lobbying, conflict of interest and campaign reporting statutes.

LOBBYING AND CONFLICT OF INTEREST - The act removes a requirement that university boards of regents or board of curators file financial disclosure statements and requires that each president/chancellor file a disclosure statement.

The definition of expenditure for the purpose of reporting lobbying activity is modified to exclude items of little value offered to the general public, items provided to a public official which may be necessary to the performance of an official duty, including making a public presentation and participation in a ceremonial event.

Lobbying reporting requirements have been removed from section 105.470 and placed in section 105.473 with changes:

- Individuals lobbying the judiciary must register as lobbyists; - All lobbyists must file reports regardless of the amount of any expenditures (current law allows lobbyists to file a statement of limited activity if their expenditures total less than $50 in the aggregate); - The civil penalty for employing a person to act as a lobbyist when the person is not registered as a lobbyist is raised from $5,000 to $10,000; - Currently lobbyists convicted of violating lobbyist reporting requirements cannot lobby for two years. This act removes that limitation; - The Commission must file a report on the 20th of every month to members and members-elect of the General Assembly judges and judicial officers and any other persons holding elective state office. No public access until 10 days after providing such reports, unless the report is under review; - Each lobbyist must file a statement on March 15 and May 30 identifying legislative, executive and judicial actions which the lobbyist supported or opposed;

The Missouri Ethics Commission shall accept reports electronically by January 1, 1998 and information shall be available via INTERNET by January 1, 1999. Information is to be made available to the public to the maximum extent possible. The executive secretary will be called the executive director and the director shall employ such staff, including legal staff to represent the commission. No signatures are required to obtain public documents published by the Ethics Commission on the Internet.

Candidates for office who fail to file a financial disclosure statement within 25 days of the last day for filing for office will have their names removed from the ballot. Currently, candidates have 55 days to file that report before their names are removed form the ballot.

The Ethics Commission is given the authority to investigate complaints. When a special prosecutor is appointed, the court shall order reasonable attorney fees which shall be paid in accordance with rules promulgated by the State Courts Administrator out of funds appropriated of the Office of Administration for that purpose.

The Commission shall issue advisory opinions upon written request and the commission shall give an approximate time frame as to when the opinion shall be issued. The Commission may decline to issue a written opinion, upon providing a reason for the refusal in writing.

When the Commission finds that there is cause to believe that a violation which is not a criminal violation has occurred, and the responsible person is a public official or employee, that person may appeal to the Administrative Hearing Commission. If by a vote of 4 members the Ethics Commission determines that action other than criminal prosecution would be appropriate, the Commission shall: - Notify the person to stop a violation, with the ability to seek judicial enforcement; - Notify the person of the requirement to file, amend or correct any report or other document; and - File the report to be maintained as a public document; or - Issue a letter of reprimand, to be maintained as a public document; or - Issue a letter stating that no further action shall be taken, to be maintained as a public document; or - Have the power to seek fees for violations no more than $1,000 or double the amount involved in the violation.

The Executive Director shall notify candidates and their treasurers by certified mail, or other means to give actual notice, when a committee has failed to file a campaign report. The Ethics Commission may contract to collect late filing fees from those who are delinquent for more than 30 days, and may seek a judgment in Cole County Circuit Court after 120 days.

The Attorney General shall represent the Ethics Commission in all State Appellate, Federal Appellate or Supreme Courts. If the Attorney General refuses, the Commission may retain counsel.

CAMPAIGN REPORTING - Local governments are prohibited from expending public funds on behalf of a ballot measure. This act extends that prohibition to include the state.

Under current law, there is a reporting exemption for individuals and committees that do not receive more than $1,000 in a year. This act lowers the reporting threshold to receipts and expenditures of more than $500 for candidates for statewide offices, partisan judicial offices, the General Assembly, or municipal offices in cities with a population of more than 100,000. It would remain $1,000 for candidates for nonpartisan judicial offices, political party offices, county offices and offices in municipalities with a population of less than 100,000. The act specifies that aggregate expenditures of $500 or more made by a continuing committee shall be reported.

Neither a campaign committee (ballot measures) nor a continuing committee (PAC) can be formed later than 30 days before the election for which it accepts contributions or makes expenditures. Potential candidates may form exploratory committees but such committees shall terminate no later than December thirty-first of the year before general elections for the office under consideration.

Currently, candidates for statewide office, the General Assembly, judicial office (except municipal judge) and certain municipal offices are excluded from reporting requirements if aggregate contributions and expenditures do not exceed $1,000 per election and an exemption statement is filed. This act changes the dollar amount to $500 and requires filing a statement of limited activity in addition to the exemption statement. The deadline for filing notices of rejection is changed from 12 to 30 days before the election. Nonpartisan candidates for Supreme Court, Circuit Court, Associate Court or candidates for political party office, county office and municipal office in cities with 100,000 or less shall be exempt from reporting requirements if the aggregate expenditures and contributions do not exceed $1,000 and an exemption statement is filed.

Disclosure reports are required to be filed by committees domiciled in this state receiving $1,500 or more from committees domiciled outside this state.

The act limits contributions to candidates for judicial offices in the same manner and same amounts as set in current law for candidates or other offices.

The committee of a candidate or office holder who dies may make an unconditional gift of moneys held by the committee to the family of the candidate or officer holder. This expires October 1, 1997.

A candidate may form a debt service committee for no more than 18 months and subject to termination when contributions received exceeds the amount of the debt.

All committees are required to file quarterly disclosure reports and the candidate committee report due 40 days before the election has been eliminated. A committee supporting or opposing a petition effort regarding a ballot measure or to remove an incumbent from office must file its initial disclosure report within 15 days after it accepts contributions or makes expenditures. If the committee is gathering signatures for a petition it shall file a disclosure report not later than 15 days after the submission of the petition. All committee reports must be cumulative for any given election.

Expenditures associated with campaign materials which cost more than $2,000, prepared for internal dissemination to members or employees, must be reported.

An out-of-state committee which is not required to file a statement of organization in Missouri must file a report at least 14 days before making a contribution or expenditure in Missouri and no contribution or expenditure may be made after 30 days before an election.

The act repeals:

- A provision of SB 650 which required that candidates approve of printed and broadcast material (ruled unconstitutional by a U.S. District Court, 8th Circuit, decision); - Limitations on campaign expenditures contained in SB 650 (ruled unconstitutional by a U.S. District Court, 8th Circuit, decision); - Contribution limits and spend-down requirements from Proposition A (ruled unconstitutional by a U.S. District Court, 8th Circuit, decision); - A provision of SB 650 which prohibited campaign contributions during session (ruled unconstitutional by a U.S. District Court, 8th Circuit, decision).

RULES - This act establishes a preponderance of evidence standard on the agency, in any action regarding any rule promulgated by an agency pursuant to this act, to show that the rule or "threatened application of the rule" is valid, authorized by law, not in conflict with any law and not arbitrary and capricious. Reasonable fees and expenses go to the prevailing party. All rules promulgated under this act expire in one year unless the General Assembly extends it. The rules provisions terminate upon any modification to section 536.024, RSMo, prior to August 28, 1997.

Any rule or portion of a rule promulgated pursuant to this act shall become effective only as provided pursuant to chapter 536, RSMo, including, but not limited to, section 536.028, RSMo, if applicable, after the effective date of this act. All rulemaking authority delegated prior to the effective date of this act is of no force and effect and repealed. The provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028, RSMo, if applicable, to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.

This act is similar to HS/HCS/HB 495 (1997).
MARGARET J. TOALSON