Whitmer signs bills implementing Proposal 1

Gov. Gretchen Whitmer wants to redirect about $669 million away from reducing pension fund liabilities and use it to pay for programs. She presents her sixth state budget on Wednesday, Feb. 7, 2024.

Gov. Gretchen Whitmer signed bills implementing requirements for top state officials and lawmakers to report information about their finances after Michigan voters approved a constitutional amendment in 2022 mandating the disclosures.

Proposal 1 was the most popular ballot measure up for a vote last year, garnering 66% of the vote. The amendment set a Dec. 31 deadline for taking legislative action to implement the reporting requirements.

The bills Whitmer signed − Senate Bills 613-616 − go beyond Proposal 1, subjecting candidates for office to financial reporting requirements, for instance. But they don't go as far as some Democratic lawmakers and transparency advocates had hoped.

"We're pleased to see Governor Whitmer sign this long overdue ethics reform into law—but ultimately, the law falls short of voters' expectations," said Quentin Turner, director of Common Cause Michigan, an organization seeking to promote greater government accountability. "Despite overwhelming, bi-partisan support for greater transparency from our elected officials, lawmakers weakened the law to shield themselves from public scrutiny."

Still, proponents of the new requirements have described them as a first step.

"State government must be open, transparent, and accountable to the people it serves," Whitmer said in a statement Friday. "Since taking office, we've taken action to improve transparency and accessibility for Michiganders, and I'm proud to sign this good government legislation that implements Proposal 1 into law."

Michigan has long been one of only two states that did not require lawmakers to disclose information about their finances.

Starting next year, lawmakers along with the governor, attorney general, lieutenant governor and secretary of state must file annual financial disclosure reports, detailing their income and assets, positions they hold, their spouse's employer and other information. Proposal 1 did not specifically mandate reporting requirements for spouses or candidates seeking office.

But some criticize the spousal reporting requirement which doesn't require disclosure of financial investments made by an official's spouse. Transparency advocates argue politicians could transfer assets to their spouses, making opaque the full picture of their household finances.

The new laws establish penalties for late filings as well as incomplete or inaccurate reports. It sets a $1,000 maximum fine for those who fail to meet the filing deadline and up to a $2,000 fine for those who knowingly file reports missing information or containing incorrect reporting.

For years, the Michigan Capitol was where efforts to boost transparency in state government went to die. The bills Whitmer signed were cause for celebration by those who've long pushed for changes on this front.

"After years of pushing for more openness and transparency in policymaking, we have finally enacted Michigan’s first-ever financial disclosure law that would unveil potential conflicts of interests from the officeholders who govern our state," state Sen. Jeremy Moss, D-Southfield, one of the bill sponsors, said in a statement.

"I am glad to see these disclosure bills enacted. There is a helpful step to grow people’s trust in their government and leaders,” said state Sen. Ed McBroom, R-Vulcan, in a statement. He sponsored one of the bills in the package approved by Whitmer. "This will help both the people and the legislature hold our leaders accountable and to know when real conflicts of interest exist."

Transparency: New bipartisan bills would extend FOIA to cover Michigan governor, lawmakers

McBroom and Moss have also teamed up on another transparency measure: legislation to extend the Freedom of Information Act to apply to the Legislature and governor's office. In this respect too, Michigan stands out nationally as one of two states that exempt lawmakers and the governor from such information requests.

Contact Clara Hendrickson at chendrickson@freepress.com or 313-296-5743. Follow her on X, previously called Twitter, @clarajanehen.

This article originally appeared on Detroit Free Press: Whitmer signs financial transparency measures

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