SENATE BILL NO. 114
INTRODUCED BY M. TAYLOR
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING GOVERNMENTAL ETHICS LAWS TO PROMOTE
PUBLIC CONFIDENCE IN GOVERNMENT; RESTRICTING A STATE AN ELECTED EXECUTIVE BRANCH
OFFICER OR A LEGISLATOR FROM BECOMING A LOBBYIST FOR A FOR-PROFIT PRIVATE BUSINESS
ENTITY WITHIN 24 MONTHS OF THE TERMINATION OF OFFICE; EXTENDING THE RESTRICTION ON A
FORMER EMPLOYEE CONTRACTING OR BEING EMPLOYED BY AN EMPLOYER WHO CONTRACTS WITH
THE STATE OR ANY OF ITS SUBDIVISIONS INVOLVING MATTERS WITH WHICH THE FORMER EMPLOYEE
WAS DIRECTLY INVOLVED DURING EMPLOYMENT TO 24 12 MONTHS FOLLOWING THE TERMINATION
OF EMPLOYMENT; AND AMENDING SECTIONS 2-2-105, 2-2-111, 2-2-201, AND 5-7-301, MCA."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 2-2-105, MCA, is amended to read:
"2-2-105. Ethical requirements for public officers and public employees. (1) The requirements in this section are intended as rules of conduct, and violations constitute a breach of the public trust and public duty of office or employment in state or local government.
(2) Except as provided in subsection (4), a public officer or public employee may not acquire an interest in any business or undertaking that the officer or employee has reason to believe may be directly and substantially affected to its economic benefit by official action to be taken by the officer's or employee's agency.
(3) (a) A public officer or public employee may not, within 12 months following the voluntary termination of office or employment, obtain employment in which the officer or employee will take direct advantage, unavailable to others, of matters with which the officer or employee was directly involved during a term of office or during employment. These matters are rules, other than rules of general application, that the officer or employee actively helped to formulate and applications, claims, or contested cases in the consideration of which the officer or employee was an active participant.
(b) A state AN ELECTED EXECUTIVE BRANCH officer may not become a lobbyist FOR A FOR-PROFIT
PRIVATE BUSINESS ENTITY within 24 months following the termination of office.
(4) When a public employee who is a member of a quasi-judicial board or commission or of a board, commission, or committee with rulemaking authority is required to take official action on a matter as to which the public employee has a conflict created by a personal or private interest that would directly give rise to an appearance of impropriety as to the public employee's influence, benefit, or detriment in regard to the matter, the public employee shall disclose the interest creating the conflict prior to participating in the official action.
(5) A public officer or public employee may not perform an official act directly and substantially affecting a business or other undertaking to its economic detriment when the officer or employee has a substantial personal interest in a competing firm or undertaking."
Section 2. Section 2-2-111, MCA, is amended to read:
"2-2-111. Rules of conduct for legislators. Proof of commission of any act enumerated in this section is proof that the legislator committing the act has breached the legislator's public duty. A legislator may not:
(1) accept a fee, contingent fee, or any other compensation, except the official compensation provided by statute, for promoting or opposing the passage of legislation;
(2) seek other employment for the legislator or solicit a contract for the legislator's services by the use of the office; or
(3) become a lobbyist FOR A FOR-PROFIT PRIVATE BUSINESS ENTITY within 24 months following the
termination of the legislator's term of office."
Section 3. Section 2-2-201, MCA, is amended to read:
"2-2-201. Public officers, employees, and former employees not to have interest in contracts -- local government
waiver. (1) Members of the legislature; state, county, city, town, or township officers; or any deputy or employee of an
enumerated governmental entity may not be interested in any contract made by them in their official capacity or by any
body, agency, or board of which they are members or employees. A former employee may not, within 6 months 24 12
months following the termination of employment, contract or be employed by an employer who contracts with the state or
any of its subdivisions involving matters with which the former employee was directly involved during employment. In this
section the term:
(a) "be interested in" does not include holding a minority interest in a corporation;
(b) "contract" does not include:
(i) contracts awarded to the lowest responsible bidder or proposer based on competitive bidding procedures;
(ii) merchandise sold to the highest bidder at public auctions;
(iii) investments or deposits in financial institutions that are in the business of loaning or receiving money;
(iv) a contract with an interested party if, because of geographic restrictions, a local government could not otherwise reasonably afford itself of the subject of the contract. It is presumed that a local government could not otherwise reasonably afford itself of the subject of a contract if the additional cost to the local government is greater than 10% of a contract with an interested party or if the contract is for services that must be performed within a limited time period and no other contractor can provide those services within that time period.
(c) "former employee" does not include a person whose employment with the state was involuntarily terminated due to
because of a reduction in force or other involuntary termination not involving violation of the provisions of this chapter.
(2) The governing body of a city, town, or county may waive the application of the prohibition contained in subsection
(1) for a present or former city, town, or county officer or employee who in an official capacity does not influence the
decisionmaking process or supervise a function regarding the contract in question. A governing body may grant a waiver
under this subsection only after publicly disclosing the nature of the conflict at an advertised public hearing held for that
purpose. In determining whether to grant a waiver, the governing body shall consider the following factors, where when
applicable:
(a) whether the waiver would provide to a program or project a significant benefit or an essential skill or expertise that would otherwise not be available;
(b) whether an opportunity was provided for open competitive bidding or negotiation;
(c) whether the person affected is a member of a clearly identified group of persons that is the intended beneficiary of the program or project involved in the contract; and
(d) whether the hardship imposed on the affected person or the governmental entity by prohibiting the conflict will outweigh the public interest served by avoiding the conflict.
(3) A contract entered into in violation of this section is void."
Section 4. Section 5-7-301, MCA, is amended to read:
"5-7-301. Prohibition of practice without license and registration -- restrictions. (1) No Subject to 2-2-105(3)(b)
and 2-2-111(3), an individual may practice as a lobbyist unless if that individual has been licensed under 5-7-103 and is
listed on the docket as employed in respect to all the matters he that the individual is promoting or opposing.
(2) No A principal may not directly or indirectly authorize or permit any lobbyist employed by that principal to practice
lobbying until the lobbyist is duly licensed and the names of the lobbyist and the principal are duly entered on the docket."
NEW SECTION. Section 5. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
- END -
Latest Version of SB 114 (SB0114.03)
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