Bill: Draft Conflict of Interest Standards Act

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the ‘Conflict of Interest Standards Act'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been sponsored by Representative ToadKing.
(4) This Act has been co-sponsored by Senator Sofia.

2 - Reasons
(1) This Act establishes comprehensive standards to prevent conflicts of interest in government appointments to preserve the integrity of public service.

(2) The Commonwealth is blessed with an abundance of talented and knowledgeable citizens who can fulfil government roles with distinction and without compromising conflicts.

(3) The appointment of individuals with clear conflicts of interest to positions of public trust constitutes an affront to the Commonwealth and undermines public confidence in government.

(4) Clear standards will ensure that all government appointees can serve the public interest and provide for a clear separation between public and private interests.

3 - Scope
(1) This Act applies to these positions within the Executive Branch:
(a) Department Secretary
(b) Ambassadors

(2) This Act applies to all positions within the Judicial Branch, including but not limited to:
(a) Chief Justice, Justices, Judges, and Magistrates
(b) Court Clerks

4 - Prohibited Conflicts of Interest
(1) No person may be nominated, appointed, or continue to serve in any position covered by §3 if they have any of the following conflicts:

(2) Business Ownership Conflicts:
(a) Owns, wholly or in part, any business entity that regularly contracts with or is regulated by the government department they would serve in.
(b) Holds a controlling interest in any business entity operating within the same sector or field as the government department they would serve in.

(3) Corporate Executive Conflicts:
(a) Sits on the board of directors of any business entity that operates within the same sector or field as the government department they would serve in.
(b) Holds an executive officer position in any business entity that operates within the same sector or field as the government department they would serve in.

(4) Legal Practice Conflicts:
(a) Owns, operates, or holds a partnership in any active legal firm while serving in the Judicial Branch.

(5) Financial Conflicts:
(a) Holds significant financial investments in any single company that operates within the same sector or field as the government department they would serve in.

5 - Disclosure Requirements
(1) All nominees for positions covered by this Act must provide a detailed financial disclosure statement, including:
(a) All business ownership interests
(b) All executive officer positions held in the past 3 months
(c) All significant financial investments and assets

(2) These disclosures must be made available to the confirming body in the nominee’s opening statement.

(3) Failure to provide complete and accurate disclosure shall disqualify the nominee from consideration.

6 - Divestiture Requirements
(1) Nominees who have conflicts as defined in §4 must completely divest themselves of such conflicts before assuming office.

(2) Divestiture must be completed within 14 days of nomination, or the nomination shall be considered withdrawn.

(3) Proof of divestiture must be provided before the nominee may assume their duties.

7 - Ongoing Compliance
(1) Any individual who acquires a conflict of interest as defined in §4 while serving must immediately disclose such conflict and divest within 14 days or resign their position.

(2) The President shall monitor compliance and report violations as appropriate.

8 - Enforcement
(1) Violations of this Act shall constitute grounds for immediate removal from office.

(2) The Criminal Code Act is hereby amended by adding the following offences to PART II: PROPER ADMINISTRATION OF GOVERNMENT:

“6 - Conflict Violation
Offence Type: Indictable
Penalty: Up to 350 Penalty Units; Up to 60 minutes imprisonment; immediate removal from the office they hold a conflict of interest.
A person commits an offence if the person:
(a) serves in a position covered by the Conflict of Interest Standards Act while knowingly maintaining a prohibited conflict of interest; or
(b) fails to divest themselves of a prohibited conflict of interest within the required timeframe; or
(c) acquires a prohibited conflict of interest while serving and fails to disclose and divest within 14 days.
Relevant Law: Act of Congress - Conflict of Interest Standards Act

7- False Financial Disclosure
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; Up to 60 minutes imprisonment; disqualification from holding a position covered in §3 of the Conflicts of Interest Standards Act, for up to 2 months.
A person commits an offence if the person:
(a) knowingly provides false, incomplete, or misleading information in financial disclosures required for government service; or
(b) willfully omits material information required to be disclosed under the Conflict of Interest Standards Act; or
(c) submits fraudulent documentation in support of divestiture requirements.
Relevant Law: Act of Congress - Conflict of Interest Standards Act”

9 - Exemptions and Waivers
(1) The President may grant a limited waiver for conflicts, only if any of the following conditions are met:
(a) The conflict is minor and unlikely to affect the individual's judgment;
(b) The individual's expertise is essential, and no suitable alternative candidate exists;
(c) Appropriate safeguards are established to prevent improper influence.

(2) All waivers must be publicly announced with written justification and are subject to Congressional oversight.

10 - Transition Period
(1) Current office holders have 14 days from the enactment of this Act to come into compliance with its requirements.

(2) Those who cannot or will not comply must resign their positions within this period.

11 - Definitions
(1) "Controlling Interest" means ownership of more than 25% of voting shares or decision-making authority in a business entity.

(2) "Executive Officer" means any individual, within a business entity, with senior management responsibilities, including but not limited to CEO, CFO, CTO, COO, President, Vice President, or equivalent titles.

(3) "Significant Financial Investment" means any single investment valued at more than $100,000 or representing more than 10% of an individual's total assets.

(4) "Business Entity" includes corporations, partnerships, limited liability companies, sole proprietorships, and any other form of commercial organisation.

(5) "Same Sector or Field" means any business entity that operates within the primary regulatory, oversight, or functional domain of the government department.

12 - Severability
(1) If any provision of this Act is found to be unconstitutional or invalid, the remaining provisions shall continue in full force and effect.