HB1362: HB1362 Public officers; persons having certain financial interest shall be ineligible to hold certain public offices; provide

26 LC 47 4101S The House Committee on Governmental Affairs offers the following substitute to HB 1362: A BILL TO BE ENTITLED AN ACT To amend Article 1 of Chapter 2 of Title 45 of the Official Cod e of Georgia Annotated,1 relating to general provisions for eligibility and qualifications for office, so as to provide that2 persons having certain financial interest shall be ineligible to hold certain public offices; to3 amend Part 1 of Article 2 of Chapter 10 of Title 45 of the Offi cial Code of Georgia4 Annotated, relating to general provisions for conflicts of interest, so as to prohibit state public5 officials from having financial interest in certain state contracts or from transacting business6 with the state; to revise disclosure provisions; to revise defi nitions; to provide for related7 matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Article 1 of Chapter 2 of Title 45 of the Official Code of Geor gia Annotated, relating to11 general provisions for eligibility and qualifications for office, is amended by adding a new12 Code section to read as follows:13 H. B. 1362 (SUB) - 1 - 26 LC 47 4101S "45-2-1.1.14 (a) As used in this Code section, the terms 'agency,' 'family, ' 'financial interest,' 'public15 official,' and 'transact business' or 'transact any business' shall have the same meanings as16 provided for in Code Section 45-10-20.17 (b) In addition to the provisions of Code Section 45-2-1, the following persons are18 ineligible to hold any public offices provided for in subsection (c) of this Code section; and19 the existence of any of the following facts shall be a sufficie nt reason for vacating any20 office held by a public official, provided that the acts of suc h official, while holding a21 commission, shall be valid as the acts of an officer de facto when a person, for himself or22 herself or on behalf of any business, or for any business in which such person or member23 of his or her family has a financial interest, to:24 (1) Transact any business with any agency or any federal agency or department; or25 (2) Have a financial interest, directly or indirectly, in:26 (A) A contract made by a state agency or any federal agency or department; or27 (B) Which the state or a state agency or any federal agency or department is an28 interested party,29 and of which interest such person has knowledge and reason to know.30 (c) This Code section shall apply to the public offices of Governor, Lieutenant Governor,31 Secretary of State, Attorney General, State School Superintendent, and the Commissioners32 of Agriculture, Labor, and Insurance."33 SECTION 2.34 Part 1 of Article 2 of Chapter 10 of Title 45 of the Official C ode of Georgia Annotated,35 relating to general provisions for conflicts of interest, is am ended by revising Code36 Section 45-10-20, relating to definitions, as follows:37 "45-10-20.38 As used in this part, the term:39 H. B. 1362 (SUB) - 2 - 26 LC 47 4101S (1) 'Agency' means any agency, authority, department, board, b ureau, commission,40 committee, office, or instrumentality of executive, legislative, or judicial branch of the41 State of Georgia but shall not mean a political subdivision of the State of Georgia.42 (2) 'Business' means any corporation, partnership, proprietors hip, firm, enterprise,43 franchise, association, organization, self-employed individual, trust, or other legal entity.44 (3) 'Employee' means any person who, pursuant to a written or oral contract, is employed45 by an agency.46 (4) 'Family' means spouse and dependents.47 (5) 'Financial interest' means any direct or indirect ownership, interest in a partnership,48 or holding of stock in a corporation, except where such holding constitutes less than 349 percent of the total proprietary interest of such corporation.50 (5)(6) 'Full-time' means 30 hours of work for the state per week for more than 26 weeks51 per calendar year.52 (6)(7) 'Limited powers' means those powers other than state-wide powers.53 (7)(8) 'Part-time' means any amount of work other than full-time work.54 (8)(9) 'Person' means any person, corporation, partnership, propriet orship, firm,55 enterprise, franchise, association, organization, or other legal entity.56 (9)(10) 'Public official' means any person elected to a state office and means any person57 appointed to a state office where in the conduct of such office the person so appointed has58 administrative and discretionary authority to receive and expen d public funds and to59 perform certain functions concerning the public which are assigned to him or her by law,60 regardless of whether or not such person is serving with or wit hout compensation on a61 full-time, part-time, intermittent, or consultant basis.62 (10) 'State-wide powers' means those powers exercised by public officials which affect63 and influence all of state government. Public officials who exercise such powers include64 but are not limited to the Governor, the Lieutenant Governor, m embers of the General65 Assembly, Justices of the Supreme Court, Judges of the Court of Appeals, the Secretary66 H. B. 1362 (SUB) - 3 - 26 LC 47 4101S of State, the Attorney General, the state auditor, the state ac counting officer, the67 commissioner of administrative services, members of the State P ersonnel Board, the68 director of the Office of Planning and Budget, judges of the superior courts, and district69 attorneys.70 (11) 'Substantial interest' means the direct or indirect ownership of more than 25 percent71 of the assets or stock of any business.72 (12) 'Transact business' or 'transact any business' means to s ell or lease any personal73 property, real property, or services on behalf of oneself or on behalf of any third party as74 an agent, broker, dealer, or representative and means to purchase surplus real or personal75 property on behalf of oneself or on behalf of any third party as an agent, broker, dealer,76 or representative."77 SECTION 3.78 Said part is further amended by revising Code Section 45-10-22, relating to full-time public79 officials with state-wide powers prohibitions, and public officials or employees with limited80 powers prohibitions, as follows:81 "45-10-22.82 (a)(1) It shall be unlawful for any full-time public official who has state-wide powers, for83 himself or herself or on behalf of any business, or for any business in which suc h public84 official or member of his or her family has a substantial financial interest, to:85 (1) Transact transact any business with any agency; or86 (2) Have a financial interest, directly or indirectly, in:87 (A) A contract made by a state agency; or88 (B) Which the state or a state agency is an interested party,89 and of which interest a public official has knowledge and reason to know.90 (2) It shall be unlawful for any public official who has limited powers, for himself or on91 behalf of any business, or for any business in which such public official or member of his92 H. B. 1362 (SUB) - 4 - 26 LC 47 4101S family has a substantial interest to transact any business with the agency for which such93 public official serves.94 (b) The provisions of paragraph (1) of subsection (a) of this Code section shall not apply95 to:96 (1) Any transaction made pursuant to sealed competitive bids;97 (2) Any transaction when the amount of a single transaction does not exceed $250.00 and98 when the aggregate of all such transactions does not exceed $9,000.00 per calendar year;99 and100 (3) Any transaction involving the lease of real property to or from any agency if such101 transaction has been approved by the State Properties Commissio n or the Space102 Management Division of the Department of Administrative Services.103 (c)(b) Any person who knowingly violates subsection (a) of this Code section shall be104 subject to the penalties provided for in Code Section 45-10-28."105 SECTION 4.106 Said part is further amended by revising Code Section 45-10-24, relating to part-time public107 officials with state-wide powers prohibitions, part-time employ ees prohibitions, and108 exceptions to prohibitions, as follows:109 "45-10-24.110 (a)(1) Except as provided in subsection (b) of this Code section, it shall be unlawful for111 any part-time public official who has state-wide powers, for hi mself or on behalf of any112 business, or for any business in which such public official or member of his family has a113 substantial interest to transact any business with any agency.114 (2)(a) Except as provided in subsection (b) of this Code section, it shall be unlawful for115 any part-time employee, for himself or on behalf of any busines s, or for any business in116 which such employee or member of his family has a substantial i nterest to transact any117 business with the agency by which such employee is employed.118 H. B. 1362 (SUB) - 5 - 26 LC 47 4101S (b) The provisions of subsection (a) of this Code section shall not apply to:119 (1) Any transaction made pursuant to sealed competitive bids;120 (2) Any transaction when the amount of a single transaction does not exceed $250.00 and121 when the aggregate of all such transactions does not exceed $9,000.00 per calendar year;122 (3) Any transaction involving the lease of real property to or from any agency if such123 transaction has been approved by the State Properties Commissio n or the Space124 Management Division of the Department of Administrative Services; and125 (4) Any transaction involving the purchase of surplus state property at a public auction.126 (c) Any person who knowingly violates subsection (a) of this Code section shall be subject127 to the penalties provided for in Code Section 45-10-28."128 SECTION 5.129 Said part is further amended by revising Code Section 45-10-24.1, relating to exemption for130 transactions by family owned business when university system employee has interest, and131 requirements, as follows:132 "45-10-24.1.133 Subsection (a) of Code Section 45-10-23 and paragraph (2) of subsection (a) of Code134 Section 45-10-24 shall not apply to a transaction with a unit of the University System of135 Georgia by a family owned business in which an employee of the university system or a136 member of the employee's family has an ownership interest where all of the following137 apply:138 (1) The employee or one or more members of the employee's fami ly or both have an139 ownership interest in a family owned business, but the employee is not actively engaged140 in the day-to-day management of the business;141 (2) The employee is employed by a department of the unit of the university system in a142 position below that of department head; and143 (3) The transaction is:144 H. B. 1362 (SUB) - 6 - 26 LC 47 4101S (A) With a unit of the university system different than the un it employing the145 employee; or146 (B) With a department of the employing unit of the university system different than the147 department employing the employee."148 SECTION 6.149 Said part is further amended by revising the introductory language of subsection (a) of Code150 Section 45-10-25, relating to exceptions to prohibitions on transactions with state agencies,151 as follows:152 "45-10-25.153 (a) The provisions of Code Sections 45-10-22, 45-10-23, and 45-10-24 shall not apply to:"154 SECTION 7.155 Said part is further amended by revising Code Section 45-10-26, relating to annual disclosure156 statements concerning business transactions with state and public records, as follows:157 "45-10-26.158 (a) Except as provided in subsection (b) of this Code section, any public official or159 employee, whether for himself, herself, or on behalf of any bus iness, or any business in160 which such public official or employee or any member of his or her family has a substantial161 interest who transacts business with the state or any agency th ereof shall disclose such162 transactions. Such disclosure shall be submitted prior to January 31 each year to the State163 Ethics Commission on such forms as it shall prescribe and shall include an itemized list of164 the previous year's transactions with the dollar amount of each transaction reported and165 totaled. Such disclosure statements shall be public records.166 (a.1) Except as provided in subsection (b) of this Code section, any public official, whether167 for himself, herself, or on behalf of any business, or any busi ness in which such public168 official or employee or any member of his or her family has an interest less than a financial169 H. B. 1362 (SUB) - 7 - 26 LC 47 4101S interest who transacts business with the state or any agency th ereof, shall disclose such170 transactions. Such disclosure shall be made in the same manner as the disclosures required171 by subsection (a) of this Code section.172 (b) The requirement to disclose certain transactions as provided in subsection (a) of this173 Code section shall not apply to any transaction when the amount of a single transaction174 does not exceed $250.00 and when the aggregate of all transacti ons does not exceed175 $9,000.00 per calendar year.176 (c) Any person who fails to file a disclosure statement as required in subsection (a) of this177 Code section shall be subject to the penalties provided for in Code Section 45-10-28."178 SECTION 8.179 All laws and parts of laws in conflict with this Act are repealed.180 H. B. 1362 (SUB) - 8 -