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NewsJuly 12, 1991

City and county governments, school districts and other entities with budgets of over $1 million fall under provisions of a new ethics law signed this week by Gov. John Ashcroft. The intent of the law, as it relates to local governments, is to advise the public of possible conflicts of interest involving elected officials, chief administrative officers, chief purchasing officers, and decision-makers of political subdivisions...

City and county governments, school districts and other entities with budgets of over $1 million fall under provisions of a new ethics law signed this week by Gov. John Ashcroft.

The intent of the law, as it relates to local governments, is to advise the public of possible conflicts of interest involving elected officials, chief administrative officers, chief purchasing officers, and decision-makers of political subdivisions.

Under the law, governmental entities have until Sept. 15 to approve their own code of ethics, which would require certain officials to file modified reports. If they fail to approve their own plans, then the entities will have to comply with more stringent reporting requirements that apply to elected officials, and non-elected officials involved in purchasing and decision-making.

Cape Girardeau County Clerk Rodney Miller and members of the county commission have discussed the new ethics law and hope to decide how to proceed after a meeting is held next week in Jackson to explain it.

The Secretary of State's office will be holding one in a series of regional meetings around the state at 7 p.m. Wednesday in the circuit courtroom at the county courthouse in Jackson. The secretary of state is also providing entities with a sample ethics code they might want to use as a starting point for complying with the law.

Paul Bloch, who is deputy secretary of state and in charge of the elections division, said he and his staff are trying to become as familiar as possible with the law to assist governmental entities in reaching compliance.

"No matter what the entities do, they are subject to this ethics and conflict of interest law," said Bloch. "If they choose to, they can select their own method for discussing possible conflicts of interest officials could find themselves in."

Under the provisions of the ethics law, if a political subdivision did not approve its own ethics guidelines, all elected officials, the chief purchasing and administrative officers, full-time general counsel, each employee authorized to promulgate rules or vote on adoption of rules, and any designated decision-making public servants would be required to file annual reports between Jan. 1 and May 1 each year.

This report would require such things as the names of all employers paying income of $1,000 or more; any business partnerships and sole proprietorships; corporations or not-for-profit organizations the person serves as a director or officer for; gifts and honorarium received in excess of $200 except from family members; stock holdings or real estate holdings (other than personal residence) valued at more than $10,000; and names of family members employed by the state or political subdivision, or as a lobbyist.

These provisions apply to family members as well as the officials.

Miller and Bloch agreed that most entities will draft an ethics code of their own because of the strict reporting requirements for those that do not.

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Political subdivisions that adopt their own ethics codes would require elected officials and employees in decision-making positions to disclose any "substantial interests" they have. This would include the names of the parties and dates of each transaction in excess of $500 involving the political subdivision, family members, or any businesses in which the officials or close family members have an interest.

In addition, the law still requires the chief administrative officer and the chief purchasing officer to disclose: the name and address of each of the employers they received income of $1,000 or more during the year; the name and address of each business or partnership where more than 10 percent is owned or more than 2 percent of publicly traded stock is owned; and the name and address of each corporation for which a person serves as officer, director, or receiver.

Each political subdivision may, in its ethics code, require more substantial disclosure if it desires.

Those who file are not required to list total income or holdings, but rather only sources that are greater than the minimum amounts.

In the case of counties, Bloch said his opinion is that the administrative officer would be all three members of the county commission since they all have an equal vote in making decisions. In most counties, the chief purchasing officer would also be the commission.

In cities, city managers, some mayors, and other officials given purchasing authority would be required to comply. For school districts, the superintendent and business manager would likely have to file the reports.

Bloch said his office is continuing its research on exactly who should be covered by the law.

The new ethics law also calls for the creation of a Missouri Ethics Commission, which after Jan. 1, 1993 will replace the Campaign Finance Review Board now in the Secretary of State's office.

The law also makes changes in reporting requirements and definitions of lobbyists.

After Jan. 1, 1993, all ethics reports and campaign finance reports for elected officials, appointed officials, and candidates at all levels will have to be filed with the new ethics commission.

Bloch said he was optimistic the new law will improve campaign finance reporting and efforts to monitor ethics at all levels of government in Missouri.

In general, the new ethics legislation is designed to keep elected officials and employees from accepting bribes; using confidential information for financial gain; favorably acting on any matter that would financially benefit them, their spouses or dependent children; or using their positions to gain financially or receive benefits from someone else.

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