74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1539
Senate Bill 430
Sponsored by Senator SCHRADER
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Prohibits public official from receiving gifts not extended to
others who are not public officials. Provides exceptions for
political contributions, unsolicited tokens or items with value
of less than $50, informational material, commercially reasonable
loans made in ordinary course of business and food or beverage
provided to public official in presence of provider. Sets $100
aggregate calendar year limit on value of food and beverage
public official may receive from single person.
A BILL FOR AN ACT
Relating to government ethics; creating new provisions; and
amending ORS 171.745, 171.750, 244.020, 244.040, 244.060,
244.100, 244.350 and 293.708.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 244.020 is amended to read:
244.020. As used in this chapter, unless the context requires
otherwise:
(1) 'Actual conflict of interest' means any action or any
decision or recommendation by a person acting in a capacity as a
public official, the effect of which would be to the private
pecuniary benefit or detriment of the person or the person's
relative or any business with which the person or a relative of
the person is associated unless the pecuniary benefit or
detriment arises out of circumstances described in subsection
{ - (14) - } { + (13) + } of this section.
(2) 'Business' means any corporation, partnership,
proprietorship, firm, enterprise, franchise, association,
organization, self-employed individual and any other legal entity
operated for economic gain but excluding any income-producing
not-for-profit corporation that is tax exempt under section
501(c) of the Internal Revenue Code with which a public official
or a relative of the public official is associated only as a
member or board director or in a nonremunerative capacity.
(3) 'Business with which the person is associated' means:
(a) Any private business or closely held corporation of which
the person or the person's relative is a director, officer, owner
or employee, or agent or any private business or closely held
corporation in which the person or the person's relative owns or
has owned stock, another form of equity interest, stock options
or debt instruments worth $1,000 or more at any point in the
preceding calendar year;
(b) Any publicly held corporation in which the person or the
person's relative owns or has owned $100,000 or more in stock or
another form of equity interest, stock options or debt
instruments at any point in the preceding calendar year;
(c) Any publicly held corporation of which the person or the
person's relative is a director or officer; or
(d) For public officials required to file a statement of
economic interest under ORS 244.050, any business from which 50
percent or more of the total annual income of the person and
members of the person's household is derived during the current
calendar year.
(4) 'Commission' means the Oregon Government Standards and
Practices Commission.
(5) 'Development commission' means any entity which has the
authority to purchase, develop, improve or lease land or the
authority to operate or direct the use of land. This authority
must be more than ministerial.
{ - (6) 'Expenditure' has the meaning given that term in ORS
260.005. - }
{ - (7) - } { + (6)(a) + } 'Gift' means something of
economic value given to a public official or { - the public
official's - } { + a + } relative { + of the public official:
(A) + } Without valuable consideration of equivalent value,
including the full or partial forgiveness of indebtedness, which
is not extended to others who are not public officials or the
relatives of public officials on the same terms and conditions;
{ + or + }
{ - and something of economic value given to a public official
or the public official's relative - }
{ + (B) + } For valuable consideration less than that
required from others who are not public officials. { - However,
'gift' does not mean: - }
{ + (b) 'Gift' does not mean: + }
{ - (a) Campaign contributions, as described in ORS chapter
260. - }
{ + (A) Contributions as defined in ORS 260.005. + }
{ - (b) - } { + (B) + } Gifts { + or inheritances + } from
{ - family members - } { + relatives.
(C) An unsolicited token or award of appreciation in the form
of a plaque, trophy, desk item, wall memento or similar item with
a value of less than $50.
(D) Unsolicited informational material, publications or
subscriptions related to the recipient's performance of official
duties.
(E) Commercially reasonable loans made in the ordinary course
of business + }.
{ - (c) The giving or receiving of food, lodging and travel
when participating in an event which bears a relationship to the
public official's office and when appearing in an official
capacity, subject to the reporting requirement of ORS 244.060
(6). - }
{ - (d) - } { + (F) + } The giving or receiving of food or
beverage if the food or beverage is consumed by the public
official { - or the public official's relatives - } in the
presence of the purchaser or provider
{ - thereof - } { + of the food or beverage and the value of
food and beverage received from a single person does not exceed
an aggregate amount of $100 in a calendar year + }.
{ - (e) The giving or receiving of entertainment if the
entertainment is experienced by the public official or the public
official's relatives in the presence of the purchaser or provider
thereof and the value of the entertainment does not exceed $100
per person on a single occasion and is not greater than $250 in
any one calendar year. - }
{ - (8) - } { + (7) + } { - ' Honoraria' - } { + '
Honorarium' + } means a payment or something of economic value
given to a public official in exchange for services upon which
custom or propriety prevents the setting of a price. Services
include, but are not limited to, speeches or other services
rendered in connection with an event
{ - at which the public official appears in an official
capacity - } .
{ - (9) - } { + (8) + } 'Income' means income of any nature
derived from any source, including, but not limited to, any
salary, wage, advance, payment, dividend, interest, rent,
{ - honoraria - } { + honorarium + }, return of capital,
forgiveness of indebtedness, or anything of economic value.
{ - (10) - } { + (9) + } 'Legislative or administrative
interest' means an economic interest, distinct from that of the
general public, in one or more bills, resolutions, regulations,
proposals or other matters subject to the action or vote of a
person acting in the capacity of a public official.
{ - (11) - } { + (10) + } 'Legislative official' means any
member or member-elect of the Legislative Assembly, any member of
an agency, board or committee that is part of the legislative
branch and any staff person, assistant or employee thereof.
{ - (12) - } { + (11) + } 'Member of household' means any
relative who resides with the public official.
{ - (13) - } { + (12) + } 'Planning commission' means a
county planning commission created under ORS chapter 215 or a
city planning commission created under ORS chapter 227.
{ - (14) - } { + (13) + } 'Potential conflict of interest'
means any action or any decision or recommendation by a person
acting in a capacity as a public official, the effect of which
could be to the private pecuniary benefit or detriment of the
person or the person's relative, or a business with which the
person or the person's relative is associated, unless the
pecuniary benefit or detriment arises out of the following:
(a) An interest or membership in a particular business,
industry, occupation or other class required by law as a
prerequisite to the holding by the person of the office or
position.
(b) Any action in the person's official capacity which would
affect to the same degree a class consisting of all inhabitants
of the state, or a smaller class consisting of an industry,
occupation or other group including one of which or in which the
person, or the person's relative or business with which the
person or the person's relative is associated, is a member or is
engaged. The { + Oregon Government Standards and Practices + }
Commission may by rule limit the minimum size of or otherwise
establish criteria for or identify the smaller classes that
qualify under this exception.
(c) Membership in or membership on the board of directors of a
nonprofit corporation that is tax-exempt under section 501(c) of
the Internal Revenue Code.
{ + (14) 'Public office' has the meaning given that term in
ORS 260.005. + }
(15) 'Public official' means any person who, when an alleged
violation of this chapter occurs, is serving the State of Oregon
or any of its political subdivisions or any other public body
{ - of the state - } { + as defined in ORS 174.109 + } as an
officer, employee, agent or otherwise, { - and - }
irrespective of whether the person is compensated for
{ - such - } { + the + } services.
(16) 'Relative' means the spouse of the public official, any
children of the public official or of the public official's
spouse, and brothers, sisters or parents of the public official
or of the public official's spouse.
(17) 'Statement of economic interest' means a statement as
described by ORS 244.060 to 244.080.
(18) 'Statewide official' means the Secretary of State or
Secretary of State-elect, State Treasurer or State
Treasurer-elect, Superintendent of Public Instruction or
Superintendent-elect of Public Instruction, Attorney General or
Attorney General-elect and the Commissioner of the Bureau of
Labor and Industries or the Commissioner-elect of the Bureau of
Labor and Industries.
(19) 'Zoning commission' means an entity to which is delegated
at least some of the discretionary authority of a planning
commission or governing body relating to zoning and land use
matters.
SECTION 2. ORS 244.040 is amended to read:
244.040. { - The following actions are prohibited regardless
of whether actual conflicts of interest or potential conflicts of
interest are announced or disclosed pursuant to ORS 244.120: - }
{ - (1)(a) - } { + (1) + } { - No - } { + Except as
provided in subsection (2) of this section, a + } public official
{ - shall - } { + may not + } use or attempt to use official
position or office to obtain financial gain or avoidance of
financial detriment { - that would not otherwise be available
but for the public official's holding of the official position or
office, other than official salary, honoraria, except as
prohibited in paragraphs (b) and (c) of this subsection,
reimbursement of expenses or an unsolicited award for
professional achievement for the public official or the public
official's relative, or for - } { + for the public official, a
relative of the public official or + } any business with which
the public official or a relative of the public official is
associated { + , if the financial gain or avoidance of financial
detriment would not otherwise be available but for the public
official's holding of the official position or office.
(2) Subsection (1) of this section does not apply to:
(a) Any part of an official compensation package as determined
by the public body that the public official serves.
(b) The receipt by a public official or a relative of the
public official of an honorarium.
(c) Reimbursement of expenses.
(d) An unsolicited award for professional achievement.
(e) The receipt by a public official or a relative of the
public official of any item, regardless of value, that is
expressly excluded from the definition of gift in ORS
244.020 + }.
{ - (b) - } { + (3) + } { - No - } { + A + } statewide
official { - shall - } { + may not + } solicit or receive,
whether directly or indirectly, honoraria for the statewide
official or for any member of the household of the official.
{ - No - } { + A + } candidate for statewide office
{ - shall - } { + may not + } solicit or receive, whether
directly or indirectly, honoraria for the candidate or for any
member of the household of the candidate.
{ - (c) - } { + (4) + } { - No - } { + A + }
legislative official { - shall - } { + may not + } solicit or
receive, whether directly or indirectly, honoraria in an amount
in excess of $1,500 or in any amount for an appearance within the
state or for an appearance during a legislative session,
regardless of location, for the legislative official or for any
member of the household of the official, except that a
legislative official may solicit or receive honoraria for
services performed in relation to the private profession or
occupation of the legislative official. { - No - } { + A + }
candidate for legislative office
{ - shall - } { + may not + } solicit or receive, whether
directly or indirectly, honoraria in an amount in excess of
$1,500 or in any amount for an appearance within the state for
the candidate or for any member of the household of the
candidate, except that a candidate for legislative office may
solicit or receive honoraria for services performed in relation
to the private profession or occupation of the legislative
official.
{ - (d) - } { + (5) + } Any public official { + or
candidate + } not described in
{ - paragraph (b) or (c) of this - } subsection { + (3) or
(4) of this section + } or a member of the public official's
household may receive honoraria.
{ - (2) No public official or candidate for office or a
relative of the public official or candidate shall solicit or
receive, whether directly or indirectly, during any calendar
year, any gift or gifts with an aggregate value in excess of $100
from any single source who could reasonably be known to have a
legislative or administrative interest in any governmental agency
in which the official has or the candidate if elected would have
any official position or over which the official exercises or the
candidate if elected would exercise any authority. - }
{ + (6) A public official, a candidate for public office or a
relative of the public official or candidate may not solicit or
receive, directly or indirectly, any gift. + }
{ - (3) - } { + (7) + } { - No - } { + A + } public
official { - shall - } { + may not + } solicit or receive,
either directly or indirectly, and { - no - } { + a + }
person { - shall - } { + may not + } offer or give to any
public official { + , + } any pledge or promise of future
employment { - , - } based on any understanding that
{ - such public official's - } { + the + } vote, official
action or judgment { + of the public official + } would be
influenced { - thereby - } { + by the pledge or promise + }.
{ - (4) - } { + (8) + } { - No - } { + A + } public
official { - shall - } { + may not + } attempt to further or
further the personal gain of the public official through the use
of confidential information gained in the course of or by reason
of { - the official position - } { + holding position as a
public official + } or activities of the public official { - in
any way - } .
{ - (5) No person shall offer during any calendar year any
gifts with an aggregate value in excess of $100 to any public
official or candidate therefor or a relative of the public
official or candidate if the person has a legislative or
administrative interest in a governmental agency in which the
official has or the candidate if elected would have any official
position or over which the official exercises or the candidate if
elected would exercise any authority. - }
{ + (9) A person may not offer to a public official, a
candidate for public office or a relative of the public official
or candidate any gift. + }
{ - (6) - } { + (10) + } { - No person shall - } { + A
person may not + } attempt to represent or represent a client for
a fee before the governing body of a public body of which the
person is a member. This subsection does not apply to the
person's employer, business partner or other associate.
{ + (11) The provisions of this section apply regardless of
whether actual conflicts of interest or potential conflicts of
interest are announced or disclosed under ORS 244.120. + }
SECTION 3. ORS 244.350 is amended to read:
244.350. (1) The Oregon Government Standards and Practices
Commission or the court under ORS 244.260 (8) may impose civil
penalties not to exceed:
(a) Except as provided in paragraph (b) of this subsection,
$1,000 for { - violating - } { + violation of + } any
provision of this chapter or any resolution adopted under this
chapter.
(b) $25,000 for violation of ORS { + 244.040 (6) or (9) or + }
244.045.
(2) { + (a) Except as provided in paragraph (b) of this
subsection, + } the commission may impose civil penalties not to
exceed $1,000 for { - violating - } { + violation of + } any
provision of ORS 192.660. { - However, - }
{ + (b) + } A civil penalty may not be imposed under this
subsection if the violation occurred as a result of the governing
body of the public body acting upon the advice of the public
body's counsel.
(3) The commission may impose civil penalties not to exceed
$250 for violation of ORS 293.708.
(4) Any penalty imposed under this section is in addition to
and not in lieu of any other penalty or sanction that may be
imposed according to law, including removal from office.
SECTION 4. ORS 244.060 is amended to read:
244.060. The statement of economic interest filed under ORS
244.050 { - , - } shall be on a form prescribed by the Oregon
Government Standards and Practices Commission { - , and - }
{ + . + } The person filing the statement shall supply the
information required by this section and ORS 244.090, as follows:
(1) The { - name - } { + names + } of all positions as
officer of a business and business directorships held by the
person or a member of the household of the person during the
preceding calendar year.
(2) All names under which the person and members of the
household of the person do business.
(3) Sources of income received at any time during the preceding
calendar year by the person { - or a - } { + and by each + }
member of the household of the person that produce 10 percent or
more of the total annual household income.
(4) The name, principal address and brief description of the
source of income from which 50 percent or more of the total
annual income of the person and members of the household of the
person was received during the preceding calendar year and
whether the source existed during the preceding year, and whether
the source is derived from an entity that now does business or
could reasonably be expected to do business or has legislative or
administrative interest in the governmental agency of which the
public official is or the candidate if elected would be a member
or over which the public official has or the candidate if elected
would have authority.
(5)(a) { - The listing - } { + A list + } of all real
property in which the public official or candidate
{ - therefor - } { + for public office + } or a member of the
household of the public official or candidate has or has had any
personal, beneficial ownership interest during the preceding
calendar year, any options to purchase or sell real property,
including a land sales contract, and any other rights of any kind
in real property located within the geographic boundaries of the
governmental agency of which the public official { - is - }
{ + holds, + } or the candidate if elected would { - be a
member - } { + hold, any official position + } or over which
the public official { - has - } { + exercises, + } or the
candidate if elected would { - have - } { + exercise, any + }
authority.
(b) This subsection does not require the listing of the
principal residence of the public official or candidate.
{ - (6)(a) Notwithstanding ORS 244.020 (7)(c), if a public
official has received food, lodging and payment of travel
expenses exceeding $100 when participating in an event which
bears a relationship to the public official's office and when
appearing in an official capacity, the name, nature and business
address of the organization paying the expenses and the date and
amount of that expenditure. - }
{ - (b) Beginning on July 1, 1992, the dollar amount
specified in paragraph (a) of this subsection shall be adjusted
annually by the commission based upon the change in the Portland
Consumer Price Index for All Urban Consumers for All Items as
prepared by the Bureau of Labor Statistics of the United States
Department of Labor or its successor during the preceding
12-month period. The amount determined under this paragraph shall
be rounded to the nearest dollar. - }
{ - (7) - } { + (6) + } Any honoraria exceeding $50
received during the preceding calendar year by the person or a
member of the household of the person, the payer of the honoraria
and the date and time of the event for which the honoraria was
received.
SECTION 5. ORS 244.100 is amended to read:
244.100. { - (1) - } The Oregon Government Standards and
Practices Commission { - by rule may require - } { + may
adopt rules requiring + } the disclosure and reporting of
{ - gifts - } { + any item that is excluded from the
definition of gift in ORS 244.020 + } or other compensation made
to or received by a public official or candidate for
{ - elective - } { + public + } office.
{ - (2) The commission by rule may exempt from the gift
limitation contained in ORS 244.040, any gift of food or beverage
but may require that when gifts of food or beverage exceed a
dollar amount fixed by the commission, the source thereof shall
be disclosed on a form prescribed by the commission. - }
{ - (3) In addition to any disclosures or reports required
under subsections (1) and (2) of this section, any person or
organization that provides a public official with food, lodging
or travel expenses exceeding $50, as described in ORS 244.060
(6), shall notify the public official in writing of the amount of
the expense. The notice shall be sent to the public official
within 10 days from the date such expenses are incurred. - }
SECTION 6. ORS 171.745 is amended to read:
171.745. (1) A lobbyist registered with the Oregon Government
Standards and Practices Commission or required to register with
the commission shall, on January 31 and July 31, of each
even-numbered year, and on January 31, April 30 and July 31 of
each odd-numbered year, file with the commission a statement
showing:
(a) The total amount of all moneys expended by the lobbyist for
the purpose of lobbying in the preceding reporting period for:
(A) Food, refreshments and entertainment;
(B) Printing, postage and telephone;
(C) Advertising, public relations, education and research; and
(D) Miscellaneous; and
(b) The name of any legislative or executive official to whom
or for whose benefit, on any one occasion, an expenditure in
excess of $25 is made for the purposes of lobbying, and the date,
name of payee, purpose and amount of that expenditure.
(2) Beginning on July 1, 1979, the dollar amount specified in
subsection (1)(b) of this section shall be adjusted annually by
the commission based upon the change in the Portland Consumer
Price Index for All Urban Consumers for All Items as prepared by
the Bureau of Labor Statistics of the United States Department of
Labor or its successor during the preceding 12-month period. The
amount determined under this subsection shall be rounded to the
nearest dollar.
(3) Statements required by this section need not include
amounts expended by the lobbyist for personal living and travel
expenses and office overhead, including salaries and wages paid
for staff and secretarial assistance, and maintenance expenses.
If the amount of any expenditure required to be included in a
statement is not accurately known at the time the statement is
required to be filed, an estimate of the expenditure shall be
submitted in the statement and designated as an estimate. The
exact amount expended for which a previous estimate was made
shall be submitted in a subsequent report when the information is
available.
(4) Notwithstanding ORS 171.735, 171.740 and subsections (1) to
(3) of this section, a registered lobbyist, who engages in
lobbying activities without compensation on behalf of an
organization is not required to register as a lobbyist for the
organization as long as the lobbying activity does not exceed the
financial or time limits set in ORS 171.735 (4).
{ - (5) A statement required by this section shall include a
copy of any notice provided to a public official under ORS
244.100 (3). - }
{ - (6) - } { + (5) + } For each statement required by this
section, an entity comprised of more than one lobbyist may file
one statement that reports expenditures by the entity and not by
individual lobbyists.
SECTION 7. ORS 171.750 is amended to read:
171.750. (1) Any person on whose behalf a lobbyist was
registered, or was required to register with the Oregon
Government Standards and Practices Commission at any time during
the preceding calendar year, shall file with the commission, by
January 31st of each year, a statement showing, for the preceding
calendar year:
(a) The total amount of all moneys expended for lobbying
activities on the person's behalf, excluding living and travel
expenses incurred for a lobbyist performing lobbying services.
(b) The name of any legislative or executive official to whom
or for whose benefit, on any one occasion, an expenditure in
excess of $25 for the purpose of lobbying is made by the person,
but not including information previously reported in compliance
with ORS 171.745, and the date, name of payee, purpose and amount
of that expenditure.
(2) Using July 1, 1979, as the base, the dollar amount
specified in subsection (1)(b) of this section shall be adjusted
annually by the commission based upon the change in the Portland
Consumer Price Index for All Urban Consumers for All Items as
prepared by the Bureau of Labor Statistics of the United States
Department of Labor, or its successor, during the preceding
12-month period. The amount determined under this subsection
shall be rounded to the nearest dollar.
{ - (3) A statement required under subsection (1) of this
section shall include a copy of any notice provided to a public
official under ORS 244.100 (3). - }
SECTION 8. ORS 293.708 is amended to read:
293.708. (1) As used in this section:
(a) 'Business' has the meaning given that term in ORS 244.020.
(b) 'Business with which the person is associated' has the
meaning given that term in ORS 244.020.
(c) 'Relative' has the meaning given that term in ORS 244.020.
(2) When a member of the Oregon Investment Council becomes
aware that action on a matter pending before the council might
lead to private pecuniary benefit or detriment to the person, to
a relative of the person or to a business with which the person
or a relative of the person is associated, the member shall
notify in writing the State Treasurer or the Chief Deputy State
Treasurer that any action, decision or recommendation by the
member might constitute an actual or potential conflict of
interest. The member shall provide the notice not later than
three business days after the member becomes aware of the
possibility of an actual or potential conflict.
(3) Subsection (2) of this section does not apply if the
pecuniary benefit or detriment arises out of circumstances
described in ORS 244.020 { - (14)(a) to (c) - } { + (13)(a)
to (c) + }.
(4) Nothing in this section excuses a member of the council
from compliance with ORS 244.120.
SECTION 9. { + (1) The amendments to ORS 244.020 and 244.040
by sections 1 and 2 of this 2007 Act apply to gifts received or
made on or after January 1, 2008.
(2) The amendments to ORS 244.060 and 244.100 by sections 4 and
5 of this 2007 Act apply to expenses received or paid on or after
January 1, 2008. A public official shall list on the first
statement of economic interest filed after January 1, 2008, all
expenses the public official received prior to January 1, 2008,
that were:
(a) Required to be reported under ORS 244.060 on the day before
January 1, 2008; and
(b) Not reported on a previous statement of economic interest
the public official filed.
(3) The amendments to ORS 244.350 by section 3 of this 2007 Act
apply to violations occurring on or after January 1, 2008. + }
SECTION 10. { + (1) Any proceeding, action, prosecution or
other business or matter undertaken or commenced before January
1, 2008, by the Oregon Government Standards and Practices
Commission under any provision of ORS chapter 244 and still
pending on January 1, 2008, shall be conducted and completed by
the commission in the same manner, under the same terms and
conditions and with the same effect as though undertaken,
conducted or completed before January 1, 2008.
(2) Nothing in this 2007 Act relieves any person of any
obligation with respect to any tax, fee, fine, civil penalty or
other charge, interest, penalty, forfeiture or other liability,
duty or obligation. + }
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