TRAVERSE CITY -- State Rep. Wayne Schmidt split from his northern Michigan peers and House Republican leaders when he voted against ethics legislation designed to require state lawmakers to disclose their personal finances.
The bill passed the House with bipartisan support Wednesday 81-28. The legislation requires all state elected officials and any local elected officials who make over $60,000 a year to disclose their income, assets, debts, and positions held in any business enterprise, nonprofit, or union.
Government watchdog groups Common Cause of Michigan and Michigan Campaign Finance Network applauded the legislation.
"On the positive, it allows for greater oversight and gives confidence to the general public that business will be out in the open serving the public interest, rather than (lawmakers') own financial well-being," said Rich Robinson, executive director of the Michigan Campaign Finance Network.
Schmidt, a Traverse City Republican who represents Grand Traverse and Kalkaska counties, said he voted against the bill because it didn't require all city, township, school, and county elected officials to disclose their personal finances.
"This isn't even a start towards transparency because it doesn't address the true nature of transparency," Schmidt said. "All elected officials should be included."
When asked if voters have a right to know if a lawmaker benefits financially from a vote, Schmidt repeated that's it's not true transparency unless it applies to all.
Kevin Elsenheimer, R-Kewadin, supported the bill. The House Republican leader represents Antrim, Charlevoix, Otsego and Cheboygan counties.
Elsenheimer said the state should require personal financial disclosure for local officials, but he voted for the bill because Democratic leaders pledged to address the issue in separate legislation.
"I believe the bill's requirements for legislators and other government officials was reasonable and roughly consistent with federal law and people have a right to know," Elsenheimer said.
State Rep. Dan Scripps, D-Leland, called the bill a good first step toward more open government.
"Forty-seven other states have requirements for financial disclosure," Scripps said. "We were way out of line."
Scripps, who represents Leelanau, Benzie, Manistee and Mason counties, said not all local officeholders should be held to the same standards as state elected officials.
"For some people in townships, it's essentially a voluntary job and I don't want to make it where people don't want to run for office," Scripps said.
Democratic Rep. Gary McDowell, who represents Emmet County and Republican Rep. Darwin Booher, whose district includes Wexford County, also voted in favor of the bill.
Antrim County Prosecutor Charlie Koop, who makes more than $60,000, said he doesn't have a problem disclosing his income, assets or debt, but is concerned the state might require too much detail and make officials susceptible to identity theft. He also considers the income limit arbitrary.
"Don't you think there would be a lot more shenanigans going on in a township with zoning," Koop said. "Prosecutors can't do much."
Koop said the bill could prevent some good candidates from running for public office.
"I don't think people are afraid to disclose their income. I think people will be afraid to disclose their debts," Koop said. "It can raise a lot of questions."
Past attempts at ethics reform adopted by the House died in the Senate and some expect the same fate for the financial disclosure bill.
Robinson said the bill has some shortcomings that might give the Senate an excuse to kill it.
"Essentially, this bill is about protection from self-dealing officials and candidates aren't in position to self-deal," Robinson said. "One can't help speculate (language) wasn't designed to make it too uncomfortable for certain individuals to run for office, such as Dick DeVos," a Grand Rapids millionaire who dipped heavily into his personal fortune when he ran against Gov. Jennifer Granholm in 2006.
"I think that makes it hard for the Republican caucus to support it, but that's why I'd love to see them call the bluff, eliminate candidates and send it back to the House," Robinson said. "I'd be surprised, but I'd love to see it."
Two companion bills also adopted by the House would ban legislators from becoming lobbyists for two years after they leave office, and dock their pay for missing legislative sessions.
"It's amazing, most days there are (legislators) absent," Scripps said. "There are both people who have never missed a day and there are people who are gone on a semi-regular basis."
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