| 1. |
Who must file disclosures
regarding their financial and business interests, and where
must the statements of interests be filed? |
State Officials, Candidates. Disclosures of business and financial interests must be filed with the Registry of Election Finance by each person who is a candidate for, appointee to or holder of the following Tennessee offices:
- Member of the General Assembly
- Secretary of State
- Comptroller of the Treasury
- State Treasurer
- Member of the State Election Commission
- Director of the Tennessee Regulatory Authority
- Governor
- Officer of the Governor's cabinet
- Supreme Court Justice
- Judge of the Court of Criminal Appeals
- District Attorney General of each judicial district
- Attorney General and Reporter
- Public Defender of each judicial district
- Administrative Director of the Courts
- Executive Secretary of the district attorneys general conference
- Delegate to a state constitutional convention
- State Elections Coordinator
- Member of the Board of Pardons and Paroles
- Member of the Alcoholic Beverage Commission
- Executive Director of the Alcoholic Beverage Commission
- Chancellor of the Board of Regents
- President of a college or university governed by the Board of Regents
- President of the University of Tennessee
- Chancellor of a branch or campus of the University of Tennessee
- Member of the Registry of Election Finance
Such reports should be filed with the Registry of Election Finance, 404 James Robertson Parkway, Suite 1614, Nashville, TN 37243-1360.
Elected City and County Officials, Candidates. In addition, statements of interests must be filed with the county election commissions by each candidate, appointee to and holder of an elected city or county office.
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| 2. | What information must be disclosed on the statement of interests? |
The Conflict of Interest Disclosure Act sets minimums that
must be disclosed by candidates, appointees and officeholders
covered by its provisions, but such individuals are free to
be more specific or disclose more information than required
by law if they wish. The following information must be reported:
General Assembly Members Only
Sources of Income
General Assembly members
must list the name and address of major sources of private income of more than
two hundred dollars ($200) received by them or their spouses.
However, for sources of income received from a security listed on the New York Stock Echange, American Stock Exchange or Nasdaq you must only list the name of the entity and for income received from investments with a federal or state chartered bank you must only list the name of the bank. Major sources of private
income include but are not limited to offices, directorships
and salaried employment. No dollar amounts need to be listed for any items disclosed under sources of income and disclosure of
client or customer lists are not required.
Positions Held
General Assembly members must list any position held including,
but not limited to, officer, director, trustee, general partner, proprietor or representative of any corporation, firm, partnership, other business enterprise, non-profit organization or educational institution.
Both the year and month must be reported for the period of time that the position was held. Positions with the federal government, religious, social, fraternal, or political entities and those solely of an honorary nature are not required to be disclosured.
Legislative Expenses
General Assembly members must list the amount and source, by name,
or any contributions received from private sources for use
in defraying the expenses necessarily related to the adequate
performance of their legislative duties. Expenditures of campaign
funds by legislators to further their holding public office
is to be disclosed on the appropriate campaign financial disclosure
statement and need not be reported on the statements of interests.
Non General Assembly Members Only
Sources of Income
Individuals
must list the major sources of private income of more than
one thousand dollars ($1,000) received by them, their spouses
or minor children residing with them. Major sources of private
income include but are not limited to offices, directorships
and salaried employment. No dollar amounts or disclosure of
client or customer lists are required.
All Officials
Investments
Individuals must
list any investment held by them, their spouses or any minor
children residing with them in any corporation or other business
organization in excess of ten thousand dollars ($10,000) or
five percent (5%) of the total capital. The name of the corporation
or business must be listed. Dollar amounts or percentages do
not have to be given.
Lobbying
Individuals must list
any person, firm or organization for whom compensated lobbying
is done by any of their associates, their spouses or any minor
children residing with them. In addition, they must list any
firm in which they, their spouses or minor children residing
with them hold any interest for whom compensated lobbying is
done. The terms of any such employment and the measure or measures
to be supported or opposed must be explained.
Professional Services
Individuals
must, in general terms by areas of the client's interest, list
the entities to which professional services, such as those
of an attorney, accountant or architect, are furnished by them
or their spouses.
Retainer Fees
Individuals must
list any retainer fee received from any person, firm or organization
who is in the practice of promoting or opposing, influencing
or attempting to influence, directly or indirectly, the passage
or defeat of any legislation before the Tennessee General Assembly,
the legislative committees or the members.
Bankruptcy
Individuals must
list any adjudication of bankruptcy or discharge received in
any United States district court within five (5) years of the
date of the filing of the disclosure statement.
Loans
Individuals must list
any loan or combination of loans of more than one thousand
dollars ($1,000) from the same source made in the calendar
year prior to the date of the statement of interests to them,
their spouses or any minor children residing with them. Loans
need not be disclosed by such individuals, however, if the
loans are:
- From the reporting person's spouse, parent, sibling,
or children.
- From a federally insured financial institution or made
in accordance with existing law in the ordinary course
of doing business by a lender in the business of making
loans. The loan must bear the usual and customary rate
of interest, be made on a basis which assures repayment,
evidenced by a written instrument and subject to a due
date or amortization schedule.
- Secured by a recorded security interest in collateral,
bearing the usual and customary interest rate of the lender
and made on a basis which assures repayment, evidenced
by a written instrument and subject to a due date and amortization
schedule.
- From a partnership in which the reporting person has
at least ten percent (10%) partnership interest.
- From a corporation in which more than fifty percent (50%)
of the outstanding voting shares are owned by the reporting
person or the person's immediate family.
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| 3. | When must statements of interest be filed? |
After Qualifying or Appointment
A candidate for any of the applicable offices which are elective shall file a disclosure statement no later than thirty (30) days following the qualifying deadline for candidates, except where the candidate presently holds that office, has filed an annual statement as an officeholder and has had no change in condition since filing the annual statement. An appointee to any such offices shall file a disclosure statement within thirty (30) days of the date of appointment.
Annually By Officeholders
As long as any person required to file a disclosure statement under the Conflict of Interest Disclosure Act (except for a delegate to a state constitutional convention) retains his or her office of employment, such official shall annually file an amended statement or a written statement that there has been no change in condition that would require an amended statement. Such statements should be filed no later than January 31 of each year. A delegate to a state constitutional convention shall file such amended report or notice no later than fifteen (15) days after the date provided in the call for the convening of the convention.
Whenever Conditions Change
In addition, a disclosure statement should be amended whenever conditions change because of the termination or acquisition of interests as to which disclosure is required.
Such disclosures should be filed on forms prescribed by the Registry. Persons required to file statements of interests shall have their signatures attested to by a witness.
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| 4. | When must a report be filed if the due date falls on a weekend or holiday? |
Whenever the due date for the filing of a statement of interests falls on a weekend or holiday, such report must be filed with the Registry of Election Finance or the county election commission, whichever is appropriate, by the end of the next business day.
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| 5. | What happens if a candidate or official does not file the required statement of interests on time or violates other provisions of the law? |
As with campaign financial disclosure, the Registry of Election Finance and each county election registrar have the authority to impose civil penalties for failing to file a required statement on time and ignoring subsequent warnings about the required report. The Registry also has the authority to impose civil penalties for other violations.
Class One (1) Offenses
Both the Registry and county election registrars may impose civil penalties of twenty-five dollars ($25) a day up to a maximum of seven hundred fifty dollars ($750) for a class one offense. A class one offense is the late filing of any conflict of interest disclosure statement required to be filed with either the Registry or the county election commission. The law sets specific procedures that must be followed whenever the Registry or county election registrar discovers that a required report has not been filed.
The Registry staff or the county election registrar, whichever office should have received a required statement of interests, must notify the candidate or official by personal service or by return receipt requested mail that the report has not been received and that civil penalties of twenty-five dollars ($25) a day will begin to accrue five (5) days after receipt of the notice until the report is filed or for thirty (30) days, whichever occurs first.
A candidate or official who files the required disclosure statement within that five (5) day grace period shall not be subject to civil penalties.
Class Two (2) Offenses
In addition, the Registry can impose civil penalties of up to ten thousand dollars ($10,000) or fifteen percent (15%) of the amount in controversy (whichever is greater) for a class two offense. A class two offense is the failure to file a report within thirty-five (35) days of service or any other violation of the Conflict of Interest Disclosure Act.
The law requires the Registry staff to send an assessment letter to the candidate or official before any civil penalties are imposed by the Registry, advising the candidate or official of the factual basis of the violation, the maximum penalty, and the date a response must be filed.
Contested Penalties
To request a waiver, reduction or in any way contest a penalty imposed by a county election registrar, a candidate or official shall file a petition with the Registry.
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| 6. | What happens if a candidate or official fails to pay an assessed civil penalty after an assessment order becomes final? |
If a candidate or official does not pay assessed civil penalties within thirty (30) days of an assessment order becoming final, the candidate or official shall be ineligible to qualify as a candidate in any upcoming elections until the assessed civil penalties and related costs are paid.
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