Amends TCA Title 2, Chapter 10, Part 1; Title 3, Chapter 6, Part 1 and Title 8, Chapter 17, Part 1.

This bill makes changes to the Campaign Financial Disclosure Act of 1980, the Ethics Commission Act, and laws governing ethical standards for officials and employees, as described below. CAMPAIGN FINANCIAL DISCLOSURE ACT OF 1980 Under present law, if a person or entity, other than the state, a county, or a municipality, contracts to pay a fee, commission or other form of compensation for consulting services or campaign services to a staff person or employee of the general assembly; member of a commission established by and responsible to the general assembly or either house of the general assembly; member or employee of a state regulatory commission, including commissioners of the Tennessee public utility commission; or member or employee of an executive department or agency or other state body in the executive branch, then the person or entity is required to disclose the following to the Tennessee ethics commission: (1) The person to whom the fee was paid, including the full names and identities of any person or other entity through which payment flowed to or from the person making the disclosure; (2) The position of the person to whom the fee was paid; (3) The amount of the fee; (4) The date the services were rendered; and (5) A general description of the services rendered. Present law also requires a person or employee of the general assembly; member of a commission established by and responsible to the general assembly or either house of the general assembly; member or employee of a state regulatory commission, including commissioners of the Tennessee public utility commission; or member or employee of an executive department or agency or other state body in the executive branch, who contracts to receive a fee, commission, or other form of compensation for consulting services or campaign services from a person or entity other than the state, a county, or a municipality, to make the same disclosure required above. Present law authorizes the Tennessee ethics commission to devise a new form for disclosure of consulting fees or to modify the one required for use by all parties required to disclose. All disclosures made pursuant to this provision are public records and open for inspection during regular business hours. Additionally, present law requires the disclosure to be on a form designed by the Tennessee ethics commission, to be made under oath, and to contain a statement that a false statement on the report is subject to the penalties of perjury. Present law requires a disclosure form to be filed within five days of entering into a contract for consulting services or campaign services. The form is required to be updated quarterly, and the dates for filing the quarterly reports are determined by the Tennessee ethics commission. This bill removes the requirement that the disclosure forms must be updated and filed quarterly. Under present law, if a person or entity contracts to pay a member of the general assembly or a staff person or employee of the general assembly a fee, commission, or other form of compensation, for the provision of campaign services to a candidate for state office, then the person or entity is required to make the disclosures required under (1)-(5) with respect to the campaign services provided. A copy of any disclosure submitted to the Tennessee ethics commission under this provision is required to be sent by the commission to the registry of election finance. This bill adds that the above also applies if a person or entity contracts to pay a member of the general assembly or a staff person or employee of the general assembly a fee, commission, or other form of compensation, for the provision of campaign services to a political campaign committee attempting to influence the result of a state election; and removes the requirement that a copy of any disclosure submitted to the Tennessee ethics commission under this provision is required to be sent by the commission to the registry of election finance. Present law also provides, if a member of the general assembly or a staff person or employee of the general assembly contracts to receive a fee, commission, or other form of compensation, for the provision of campaign services to a person or entity involving a state election, then the member, staff person, or employee is required to make the disclosures required under (1)-(5) with respect to the campaign services provided. A copy of any disclosure submitted to the Tennessee ethics commission under this provision is required to be sent by the commission to the registry of election finance. This bill alters the above provision by replacing "or entity involving a state election" with "or political campaign committee attempting to influence the result of a state election"; and by removing the requirement that a copy of any disclosure submitted to the Tennessee ethics commission under this provision is required to be sent by the commission to the registry of election finance. TENNESSEE ETHICS COMMISSION ACT OF 2006 Present law provides that one of the duties of the Tennessee ethics commission is to provide an annual report to the governor and the general assembly by February 1 concerning the administration and enforcement of laws under the jurisdiction of the commission, including the necessity, or lack of necessity, for any additional action or additional legislation that will serve to further the purposes of laws governing ethics and lobbying. This bill changes the date that the ethics commission must provide the annual report from February 1 to July 1. Under present law, the ethics commission is the only entity authorized to issue formal advisory opinions. All opinions that deal with a statutory provision that is in any way subject to interpretation, unclear or uncertain, or subject to dispute as to its meaning or application are formal advisory opinions. This bill removes the previous sentence and, instead, provides that the commission is the only entity authorized to issue formal advisory opinions on matters related to laws governing ethics and lobbying, the Campaign Financial Disclosure Act, the Registry of Election Finance Act, and disclosure statements of conflicts of interests; however, the commission may request an opinion from the attorney general on legal issues that may be presented in a request for a formal advisory opinion. With respect to an issue addressed in a formal advisory opinion, a person who conforms that person's behavior to the requirements of the advisory opinion is prohibited from being sanctioned under present law, if it is later determined that the advisory opinion did not correctly interpret the statute. A person who requests an advisory opinion is entitled to withdraw the request at any time before the opinion is issued, in which case present law requires the commission to not issue the opinion. Present law prohibits a person who performs staff duties as an employee of the commission from having the authority to issue an advisory opinion, including an informal response. However, a person performing staff duties as the executive director or as an attorney is authorized to give informal responses to any person subject to the jurisdiction of the commission. This bill adds "assistant executive director" to the list of persons authorized to give informal responses. Present law further provides that any informal response is subject to review or modification by the ethics commission, and that any person who disputes the informal response given by the staff employee may request a formal advisory opinion from the commission. Present law requires the ethics commission to make and keep records of all inquiries and all informal responses given, including the name and position of the person making the inquiry, the entity, if any, on behalf of which the inquiry is made, the date of the inquiry, the person responding to the inquiry, the precise inquiry, including the facts and background information provided and the section or sections of statute involved, and the answer or response given. The commission is further required to compile all of the information, including a mechanism to ascertain the responses to all inquiries about the same statutory section, so that the responses will be consistent or can be prudently revised if necessary. This bill removes the requirement that the position of the person making the inquiry be included in the records, as well as the requirement that the information be so compiled. Present law authorizes an informal response to be given verbally or by electronic mail, but any verbal informal response is required to be verified by electronic mail. Whether or not a request for an informal response is answered verbally, all informal responses are required by present law to be issued by electronic mail to the person who made the request, with a copy to the members of the commission. This bill clarifies that an informal response may also be given and verified in writing by regular mail. Present law requires each informal response to: (1) Set forth the facts and background information of the inquiry; (2) Cite the relevant operative statutory section or sections and the language in the section or sections on which the response is based; (3) Refer to any relevant advisory opinions issued by the commission that relate to the inquiry; (4) Be based on such information, the operative provisions of the cited statute, and the legislative history pertaining to the statutory provisions, as evidenced by legislative committee and floor actions, discussions and debates; and (5) Indicate whether the statute and any previous opinions are clear or unclear on the issue. This bill removes requirements (1)-(3), and adds to the list in (4), legislative "intent" pertaining to the statutory provisions. Present law provides that if the person who requested the informal response conforms that person's behavior to the requirements of the informal response, then that person is prohibited from being sanctioned if it is later determined that the informal response was not a correct response or incorrectly interpreted the statutory section or sections or commission advisory opinions on the issue. This bill adds that to receive the consideration provided for in the previous sentence, an informal advisory opinion given verbally must be verified in writing by either regular or electronic mail. ETHICAL STANDARDS FOR OFFICIALS AND EMPLOYEES Present law requires each entity covered by laws governing ethical standards for public officials and employees to maintain, for public inspection, the ethical standards of such entity and to cause a copy of the adopted standards to be filed with the ethics commission. Present law requires amendments or other modifications to the ethical standards to also be filed with the commission as soon as practical after adoption by the governing body. This bill adds to the above provision the requirement that by January 1, 2024, each entity covered by the laws governing ethical standards for public officials and employees must notify the ethics commission, either in writing or electronically by email, of the primary person responsible for administering and enforcing the entity's ethical standards. This bill also requires the entity to provide the commission with the person's contact information, including the person's business address, phone number, and email address; and to notify the commission of any change in such responsibility within 30 calendar days of such change and provide the name and contact information for an interim official serving in this capacity until such time as a permanent successor can be identified. By January 31, 2024, and on each January 31 thereafter, this bill requires the ethics commission to notify the speaker of the house of representatives and the speaker of the senate, as well as the comptroller of the treasury, of each entity that is not in compliance with the laws governing ethical standards for public officials and employees. ON FEBRUARY 13, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 158, AS AMENDED. AMENDMENT #1 adds the requirement that if services continue to be provided under a contract for consulting services or campaign services for a period exceeding 12 months, then the disclosure form must be updated annually within five days of the initial contract date in each subsequent year in which the contract is in effect. This amendment also removes statutory cites that provided that the commission is the only entity authorized to issue formal advisory opinions on matters related to laws governing the Registry of Election Finance Act.