Anti-Corruption Act

This initiative is promoted to show people we are not powerless against lobbyists. We can change our constitutions ourselves. We can’t wait for the paid off politicians to end corruption. This legislation can be created for any ballot initiative state by any group willing to do so. Activism Truth is dedicated to helping people learn about the ballot initiative process and use it create our own solutions ourselves. 

11.13.2012 THE AMERICAN ANTI-CORRUPTION ACT 1
Represent.Us • anticorruptionact.org
TH E AME R ICAN ANT I -COR R U P T ION ACT
FULL PROVISIONS
1. CONFLICTS OF INTEREST
PROVISION 1: PROHIBIT MEMBERS OF CONGRESS FROM RAISING FUNDS FROM THE
INTERESTS THEY REGULATE AND FROM TAKING ACTIONS TO BENEFIT INTERESTS
THAT SPEND HEAVILY TO INFLUENCE THEIR ELECTIONS
1. Prohibit Members of Congress from fundraising from the interests they most
directly regulate
 Members of Congress may not solicit contributions, directly or indirectly, in
connection with an election for Federal office, including funds for any Federal election
activity, from a lobbyist, lobbyist client, a parent or subsidiary of a lobbyist client, or
any individual who engages in or directly supervises one or more individuals who
engage in lobbying activities on behalf of such lobbyist, lobbyist client, or parent or
subsidiary of a lobbyist client, that the Member knows has made a lobbying contact,
as that term is defined by the Lobbying Disclosure Act of 1995, as amended, 2.
U.S.C. § 1602(8),1 with the Member or his or her congressional office; with another
Member or their congressional office with whom the Member serves on a Committee
or Subcommittee or any other of division of the House or Senate if such lobbying
contact concerns matters pending before such Committee, Subcommittee, or division
of the House or Senate; or with any official or employee of any such congressional
1 Under 2. U.S.C.A. § 1602(8), the term “lobbying contact” means any oral or written communication (including an electronic
communication) to a covered executive branch official or a covered legislative branch official that is made on behalf of a client with
regard to-- (i) the formulation, modification, or adoption of Federal legislation (including legislative proposals); (ii) the formulation,
modification, or adoption of a Federal rule, regulation, Executive order, or any other program, policy, or position of the United States
Government; (iii) the administration or execution of a Federal program or policy (including the negotiation, award, or administration
of a Federal contract, grant, loan, permit, or license); or (iv) the nomination or confirmation of a person for a position subject to
confirmation by the Senate.”
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Committee, Subcommittee, or other division of the House or Senate, during the
previous two years. Members may, however, solicit contributions from such
lobbyists, lobbyist clients, and covered associates if the Member soliciting such
contributions recuses himself from taking any action, including markups of legislation,
or engaging in casework, or constituent service of any kind, of particular benefit to the
lobbyist, lobbyist client, or covered associate for a period of two years from the date
of the solicitation. If a Member of Congress that solicited such funds during the
preceding two years, but not including any date before the enactment of this
provision, then the Member must either (1) disgorge such contribution(s) by refunding
them to the donors or donating them to charity or (2) recuse himself from taking any
action, including participating in markups of legislation or engaging in casework or
constituent service of any kind, of particular benefit to the lobbyist, lobbyist client, or
covered associate for a period of two years from the date of such solicitation.
2. Prohibit Members of Congress from taking actions to benefit special interests that
provide them with contributions or spend heavily to influence their elections
 Lobbyists and entities that lobby Congress: A Member of Congress may not take
any action in any Committee, Subcommittee, or other division of the House or
Senate, including markups of legislation or casework or constituent service of any
kind, of particular benefit to a lobbyist client, as that term is defined in 2 U.S.C. §
1602(2), or the parent or subsidiary of a lobbyist client if such lobbyist, lobbyist client,
parent or subsidiary of a lobbyist client, or any individual who engages in or directly
supervises one or more individuals who engage in lobbying activities on behalf of
such lobbyist, lobbyist client, or parent or subsidiary of a lobbyist client have, in the
aggregate, directly or indirectly contributed or pledged or promised to contribute
$50,000 or more in the aggregate to the Member’s campaign committee or
leadership PAC in the previous year, or who have, in the aggregate, indirectly or
directly spent in the previous year or have pledged or promised to spend, $100,000
or more on electioneering communications or independent expenditures in support of
the Member’s campaign or in opposition to a Member’s opponent or in contributions
to organizations, including political committees, that engage in or pledge or promise
to engage in electioneering communications or independent expenditures in support
of the Member’s campaign or in opposition to a Member’s opponent.
PROVISION 2: LIMIT CAMPAIGN CONTRIBUTIONS AND PROHIBIT CERTAIN
FUNDRAISING ACTIVITIES BY LOBBYISTS, LOBBYIST CLIENTS, AND INDIVIDUALS
INVOLVED IN LOBBYING EFFORTS
 Limit to $500 per calendar year the amount that a lobbyist, lobbyist client, and any individual
who engages in or directly supervises one or more individuals who engage in lobbying
activities on behalf of a lobbyist or lobbyist client may contribute to any single federally
registered political committee, including candidates committees. This limit shall continue to
apply for one year after an individual is no longer a lobbyist, lobbyist client, or an individual
who engages in or directly supervises one or more individuals who engage in lobbying
activities on behalf of a lobbyist or lobbyist client.
 Prohibit lobbyists, lobbyist clients, and individuals who engage in or directly supervise one or
more individuals who engage in lobbying activities on behalf of a lobbyist or lobbyist client
from soliciting or coordinating funds in connection with an election for Federal office, including
funds for any Federal election activity, and also including the contribution of Tax Rebate
funds, except that such individuals may solicit and coordinate contributions from their
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immediate family members.2 This prohibition shall continue to apply for one year after an
individual is no longer a lobbyist, lobbyist client, or an individual who engages in or directly
supervises one or more individuals who engage in lobbying activities on behalf of a lobbyist
or lobbyist client.
PROVISION 3: CLOSE THE REVOLVING DOOR
 Extend the existing revolving door limitations applicable to Members of Congress and
congressional staff to 7 years for former Members, and 5 years for former congressional
staffers who are either (1) paid at a rate of 75% or more of a Member’s salary, or (2) whose
duties are not primarily secretarial in nature.
PROVISION 4: PROHIBIT CAMPAIGN CONTRIBUTIONS FROM THE PACS, LOBBYISTS,
AND COVERED ASSOCIATES OF FEDERAL GOVERNMENT CONTRACTORS
• Amend 2 U.S.C.A. § 441c(a) to state the following (inserted text underlined):
§ 441c. Contributions by government contractors
(a) Prohibition. It shall be unlawful for any person—
(1) Who enters into any contract with the United States or any department or agency
thereof, or a lobbyist or an individual who engages in or directly supervises one or more
individuals who engage in lobbying activities on behalf of such person, either for the
rendition of personal services or furnishing any material, supplies, or equipment to the
United States or any department or agency thereof or for selling any land or building to the
United States or any department or agency thereof, if payment for the performance of such
contract or payment for such material, supplies, equipment, land, or building is to be made
in whole or in part from funds appropriated by the Congress, at any time between the
commencement of negotiations for the later of two years following (A) the completion of
performance under; or (B) the termination of negotiations for, such contract or furnishing of
material, supplies, equipment, land, or buildings, directly or indirectly to make any contribution
of money or other things of value, or to promise expressly or impliedly to make any
such contribution to any political party, committee, or candidate for public office or to any
person for any political purpose or use; or
(2) knowingly to solicit any such contribution from any such person for any such
purpose during any such period.
2. CAMPAIGN FINANCE
PROVISION 5: APPLY THE EXISTING CONTRIBUTION LIMITS THAT APPLY TO PACS TO
SUPER PACS
• Amend Section 315(a) of the Federal Election Campaign Act of 1971 (2 U.S.C. § 441(a)) by
adding at the end the following new paragraph: “(9) For purposes of the limitations imposed
by paragraphs (1)(C), (2)(C), and (3)(B) on the amount of contributions which may be made
by any person to a political committee, a contribution made to a political committee which
accepts donations or contributions that do not comply with the contribution or source
prohibitions under this Act (or made to any account of a political committee which is
established for the purpose of accepting such donations or contributions) shall be treated in
the same manner as a contribution made to any other political committee to which such
paragraphs apply.”
2 The term “immediate family member” means, a spouse, partner, father, mother, son, daughter, brother, half-brother, sister, halfsister,
father-in-law, mother-in-law, grandparent, and the spouses of such persons.
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PROVISION 6: EACH REGISTERED VOTER SHALL RECEIVE, ON AN BIENNIAL BASIS, A
$100 TAX REBATE THAT THEY MAY USE TO MAKE CONTRIBUTIONS TO QUALIFYING
FEDERAL CANDIDATES, POLITICAL PARTIES, AND POLITICAL COMMITTEES
SEC 1. TAX REBATES.
(a) REBATES PROVIDED TO REGISTERED VOTERS TO MAKE CONTRIBUTIONS TO QUALIFYING
FEDERAL CANDIDATES, POLITICAL PARTY COMMITTEES, AND POLITICAL COMMITTEES.—
(1) Each individual certified to be a registered voter by the chief state election official
of a State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, or a territory or possession of the United States that is a complying state
shall receive a Tax Rebate on an biennial basis. Such rebates shall be in such form
as the Department of the Treasury may prescribe and shall be issued and furnished
by the Department of the Treasury after January 1 and before February 15 of each
odd-numbered calendar year.
(2) An individual who becomes a registered voter after January 1 of an oddnumbered
calendar year may provide the Department of the Treasury with proof of
such registration and such other information as deemed appropriate by Department
of the Treasury and shall be issued a Tax Rebate within 30 days of providing
adequate proof of registration. Individuals shall be given the ability, if they so choose,
to receive their Tax Rebate in electronic form.
(3) The total amount of Tax Rebate funds that may be redeemed in any given twoyear
election cycle shall not exceed $7.5 billion.
(4) For purpose of paragraph (1)—
(A) The term “Tax Rebate” means a certificate redeemable through a
qualified internet based platform or at a United States Post Office valued
initially at $100.
(B) The term “complying state” means a state, district, commonwealth,
territory, or possession of the United States that is determined by the Federal
Election Commission and certified by the Federal Election Commission to the
Department of the Treasury to be in compliance with the requirements of
Section 1973gg-6 of the National Voter Registration Act, and such other
requirements deemed appropriate by the Federal Election Commission.
(C) The term “chief state election official” shall be the officer or employee
designated under Section 1973gg-8 of the National Voter Registration Act to
be responsible for coordination of responsibilities under such Act.
(b) CONTRIBUTION OF TAX REBATES.—
(1) Each individual who has been furnished a Tax Rebate may redeem such rebate
through an Internet based platform established by the Department of the Treasury, at
a United States Post Office, via mail, or through a qualified Internet based platform
that will enable individuals furnished with rebates to make one or more contributions
to qualified federal candidates, political party committees, and political committees,
or towards grants provided for in subsection (d)(2).
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(2) For purposes of paragraph (1)—
(A) The term “Internet based platform” and “qualified Internet based platform”
shall mean an Internet-based website, application, or similar Internet-based
portal certified by the Department of the Treasury to—
(i) have adequate safeguards to prevent fraud and to not allow more
than one redemption of a single Tax Rebate; and
(ii) to enable Tax Rebates to be contributed anonymously to qualified
federal candidates, political party committees, and political
committees, but where a contribution is made anonymously, the
donor may be asked whether he or she is willing to be contacted by
the recipient qualified federal candidate, political party committee, or
political committee; and
(iii) allow an individual who makes a contribution of Tax Rebate funds
to revoke such contribution within 48 hours.
(B) The term “qualified federal candidates, political party committees, and
political committees” shall mean a federal candidate, political party
committee, or political committee, as those terms are defined by the Federal
Election Campaign Act, as amended that—
(i) is registered with the Federal Election Commission; and
(ii) limits the contributions it receives after the date of enactment of
this legislation to exclusively any one or combination thereof of—
(I) Tax Rebates;
(II) Contributions from individuals not prohibited from making
contributions under the Federal Election Campaign Act, as
amended, of no more than $500 per election; and
(III) Political party committees and political committees that
are funded exclusively by Tax Rebates and contributions from
individuals not prohibited from making contributions under the
Federal Election Campaign Act, as amended, of no more than
$500 per election; and
(iii) makes no expenditures after the date of enactment of this
legislation during the election cycle of the candidate, or during the
two-year biennial election cycle in the case of political party
committees and political committees, from any amounts other than
from funds identified in subsection (ii).
(c) DISQUALIFICATION AND REPAYMENT OF TAX REBATES.—
(1) If a qualified federal candidate, political party committee, or political committee
becomes disqualified from receiving Tax Rebate funds by virtue of knowingly
accepting and failing to promptly return amounts contributed in excess of $500, such
federal candidate, political party committee, or political committee shall return such
Tax Rebate funds, or provide the equivalent monetary value of such funds, to the
Department of the Treasury.
(2) The Department of the Treasury will notify individuals whose Tax Rebate
contributions were returned to the Department of the Treasury of such return, and
provide such individuals with the ability to contribute such returned Tax Rebate to
other qualified federal candidates, political party committees, and political
committees.
(3) Returned Tax Rebate funds that are not able to be returned to an individual shall
be allocated in the same manner as expired Tax Rebate funds.
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(4) For purposes of this subsection, a contribution shall be considered to have been
promptly returned if it the political committee’s treasurer uses best efforts to discover
that the contribution is in excess of $500, and the contribution is refunded within thirty
days after the treasurer discovers that the contribution is in excess of the $500
threshold. If the political committee does not have sufficient funds to refund the
amount of the contribution that is in excess of $500 within 30 days of when the
contribution is discovered to be in excess of $500, the political committee shall make
the refund from the next funds it receives.
(d) EXPIRATION OF TAX REBATES AND ALLOCATION OF UNUSED TAX REBATES.—
(1) Each Tax Rebate shall expire on December 31 of the even numbered year
immediately following the year in which Tax Rebate funds were first made available
for that two-year election cycle.
(2) Expired Tax Rebate funds shall be used by the Department of Treasury to
provide grants for the purposes stated in 42 U.S.C.A. § 15301(b).3 Such grants shall
be made in accordance with procedures established by the Department of Treasury
in cooperation with the United States Election Assistance Commission.
(e) REPEAL OF PARTY COORDINATED EXPENDITURE LIMITS FOR QUALIFIED POLITICAL PARTY
COMMITTEES.—
Section 441a(d) of The Federal Election Campaign Act, as amended, is amended by
inserting after section 441a(d)(4) the following new section:
(5) The limitations contained in paragraphs (2), (3), and (4) of this subsection shall
not apply to a national committee of a political party and a State committee of a
political party, including any subordinate committee of a State committee, that is
qualified to receive Tax Rebate funds.
(f) INCREASE IN TAX REBATE BASED ON INCREASES IN PRICE INDEX.—
(1)
(A) At the beginning of each odd-numbered calendar year (commencing in
2015), as there become necessary data from the Bureau of Labor Statistics
of the Department of Labor, the Secretary of Labor shall certify to the
Department of the Treasury and publish in the Federal Register the percent
difference between the price index for the 12 months preceding the beginning
of such calendar year and the price index for the base period.
3 “(A) Complying with the requirements under subchapter III of this chapter; (B) Improving the administration of elections for Federal
office; (C) Educating voters concerning voting procedures, voting rights, and voting technology; (D) Training election officials, poll
workers, and election volunteers; (E) Developing the State plan for requirements payments to be submitted under subpart 1 of part
D of subchapter II of this chapter; (F) Improving, acquiring, leasing, modifying, or replacing voting systems and technology and
methods for casting and counting votes; (G) Improving the accessibility and quantity of polling places, including providing physical
access for individuals with disabilities, providing nonvisual access for individuals with visual impairments, and providing assistance
to Native Americans, Alaska Native citizens, and to individuals with limited proficiency in the English language; (H) Establishing tollfree
telephone hotlines that voters may use to report possible voting fraud and voting rights violations, to obtain general election
information, and to access detailed automated information on their own voter registration status, specific polling place locations, and
other relevant information. (2) Limitation. A State may not use the funds provided under a payment made under this section-(A) to
pay costs associated with any litigation, except to the extent that such costs otherwise constitute permitted uses of a payment under
this section; or (B) for the payment of any judgment.”
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(B) The Tax Rebate and the amounts identified in paragraphs (a)(3) and
(b)(2)(B)(ii) shall be increased by the percent difference determined under
subparagraph (A);
(C)such amount so increased shall remain in effect for the calendar year and
the following calendar year; and
(D) if the amount after adjustment under clause (B) is not a multiple of $1,
such amount shall be rounded to the nearest $1.
(2) For the purposes of paragraph (1)—
(A) the term “price index” means the average over a calendar year of the
Consumer Price Index (all items—United States city average) published
monthly by the Bureau of Labor Statistics; and
(B) the term “base period” means the calendar year of enactment of this
provision.
(g) INCOME TAX LIABILITY.—
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 139D the following new section:
“SEC. 139E. TAX REBATES.
(a) Gross income does not include the value of a Tax Rebate provided to a taxpayer
by the Department of the Treasury.”
(h) AUTHORIZATION OF APPROPRIATIONS.—
(1) There are authorized to be appropriated such sums as may be necessary to carry out
the provisions of this Act.
(i) CRIMINAL PENALTIES.—
(1) It shall be unlawful for any person—
(i) to knowingly sell or offer to sell, or to purchase or to offer to purchase, any Tax
Rebate;
(ii) to knowingly falsify or duplicate or attempt to falsify or duplicate a Tax Rebate;
(iii) to knowingly redeem or attempt to redeem a Tax Rebate that has already
been redeemed or that has expired;
(iv) to knowingly interfere with or coerce any individual in the redemption and
contribution of Tax Rebate funds.
(2) It shall be unlawful for any federal lobbyist to solicit or coordinate the contribution of Tax
Rebate funds.
PROVISION 7: REVISE THE FEC’S COORDINATION REGULATIONS
The FEC’s current coordination regulations, located at 11 C.F.R. § 109.21, permit extensive
collaboration between candidates and supposedly “independent” Super PACs.
 Amend the Federal Election Campaign Act, by adding at § 431(17)(C), the following: In order
for an expenditure to be considered an independent expenditure, the organization paying for
the expenditure must act totally independently of any candidate or political party. This
includes, but is not limited to, requirements that the person making the expenditure may not
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employ or retain any individual or accept any assistance, including the solicitation of funds,
from any individual who is the candidate benefited by such expenditure, or who has, with
respect to the candidate benefited by such expenditure, within the last 5 years (1) raised
funds for the candidate; (2) been employed or retained by the candidate or candidate’s
campaign(s) or the congressional office or committee staff of a Member of Congress or the
Executive office of the President; (3) been employed or retained by a national political party
committee of the political party of the candidate; (4) been employed or retained by a vendor
employed or retained by the candidate, candidate’s campaign(s), or candidate’s party
committee of that candidate to act in a fundraising, polling, media consultant, or campaign
management capacity; or is (5) a spouse, partner, or relative of the candidate (father, mother,
sister, brother, child, first cousin, aunt, uncle) (6) a current or former business partner or
colleague of the candidate or of an employee of the candidate’s campaign. Additionally, if a
candidate publicly or privately endorses or approves of an organization’s expenditure
benefiting that candidate or any of the organization’s activities, then the expenditures of such
organization shall be deemed coordinated with such candidate.
3. TRANSPARENCY
PROVISION 8: PROHIBIT MEMBERS OF CONGRESS FROM FUNDRAISING DURING
CONGRESSIONAL WORKING HOURS, AND REQUIRE MEMBERS OF CONGRESS TO
DISCLOSE FUNDRAISING ACTIVITIES THEY ENGAGE IN WHILE CONGRESS IS IN
SESSION
• Amend the House and Senate rules to:
 Prohibit Members of Congress from engaging in political fundraising and soliciting
between 9:00 a.m. and 6:00 p.m. on any day in which their House of Congress is in
session and is not adjourned or in recess for that entire day, and during any other
hours in which the Member’s House of Congress or any committee or subcommittee
thereof of which they are a member is conducting business.
 Require Members of Congress to disclose to the Clerk of the House and to the
Secretary of the Senate, respectively, on a monthly basis, the Member’s fundraising
activities and solicitations that take place during any period of time in which the
prohibition on fundraising described immediately above is not in effect and the
Member’s House of Congress is in session, meaning that the Member’s House of
Congress is not in recess pursuant to concurrent resolution.4 Such disclosures shall
include the total time engaged in political fundraising as well as the date, time,
location, and a description of each separate fundraising event or solicitation
including the total amount raised at such event or from such effort.
PROVISION 9: AMEND THE LOBBYING DISCLOSURE ACT (LDA) TO EFFECTIVELY BRING
EVERYONE WHO LOBBIES OR WHO ORGANIZES, LEADS, OR ADVISES LOBBYING
EFFORTS WITHIN THE LDA DISCLOSURE PROVISIONS; ENHANCE LDA DISCLOSURE;
AND STRENGTHEN ENFORCEMENT
Summary of Changes
1. Triggering Lobbyist and Lobbying Firm Status
 Triggering lobbyist status
4 Pursuant to U.S. Const. art. 1, § 5, cl. 4, a concurrent resolution must be passed by each House of Congress before
either House may adjourn for more than three days.
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 Current law: Two requirements to trigger lobbyist status: (1) Two lobbying
contacts, and (2) 20% of time for client spent engaging in lobbying activities.
 AACA: Two requirements: (1) Two lobbying contacts or providing strategic
advice to lobbying efforts or directing or supervising the provision of strategic
advice to lobbying efforts, and (2) 12 hours or more spent engaging in
lobbying activities.
 Triggering lobbying form status
 Current law: Employs a lobbyist.
 AACA: (1) Employees, in the aggregate, make two or more lobbying
contacts on behalf of a client.
2. Registration Thresholds/Who Must Register and File Reports
• Lobbying firm
 Current law: $3,000 in lobbying income in calendar quarter.
 AACA: $10,000 in lobbying income in calendar quarter.
• Client of Lobbying Firm
 Current law: $3,000 in lobbying expenses in calendar quarter.
 AACA: $10,000 in lobbying expenses in calendar quarter.
• Self-Lobbying Organization
 Current law: $10,000 in lobbying expenses in calendar quarter.
 AACA: $30,000 in lobbying expenses in calendar quarter.
3. Contents of Registration Statement
 Affiliate of registrant must be disclosed
 Current law: Contribute $5,000 to registrant in quarter and actively
participate in lobbying (high threshold).
 AACA: Contribute $10,000 to registrant in quarter and actively participate in
lobbying or funds contributed for the purpose of furthering lobbying goals.
Also, the AACA would require the listing of affiliates to be included on the
registration (i.e., do away with option of listing a website that in turn lists
affiliates).
4. Contents of Quarterly Disclosure Reports
 An updated list of affiliates to be included in each quarterly report.
 Disclosure of the specific officials, offices, committees, or subcommittees
contacted.
 Disclosure of all entities (contractors and subcontractors) employed or
retained to engage in lobbying activities, along with description of such
lobbying activities.
 Disclosure of the identity of each former covered official employed or
retained by the registrant who engaged in lobbying activities on behalf of the
client, along with description of such lobbying activities.
 Do away with Internal Revenue Code reporting option for lobbying expenses.
5. Enforcement
 Require the Comptroller General to annually publish a list of noncompliant registrants
and lobbyists. Also require the Comptroller General to annually publish a list of
registrants and lobbyists that remained noncompliant for a period of one year or more
after being identified by the Comptroller General as noncompliant, as well as the
action taken against and the current status of each registrant and lobbyist identified
in such list. Any person or entity failing to come into full compliance with the
requirements of this Act within one year after being identified by the Comptroller
General as noncompliant shall be prohibited from engaging in any activities that
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would require the person or entity to be a registrant or a lobbyist for a period of 2
years.
PROVISION 10: ENHANCE TRANSPARENCY OF FUNDRAISING AND ELECTION
SPENDING
1. Require disclosure of bundlers of contributions
 Require incumbent federal officials and candidates for federal office to disclose the
identity of any individual who is authorized by or known to the official or candidate to
collect and transmit contributions to their campaign committee or leadership PAC,
regardless of whether or not the individual is a lobbyist.
2. DISCLOSE Act of 2012.
 Enact the most recent version of the Democracy is Strengthened by Casting Light on
Spending in Elections Act of 2012, S. 3369, 112th Cong. (2012).
4. ENFORCEMENT
PROVISION 11: MAKE THE FEDERAL ELECTION COMMISSION A MORE FUNCTIONAL
AND INDEPENDENT BODY; STRENGTHEN THE HOUSE AND SENATE ETHICS
COMMITTEES AND THE OFFICE OF CONGRESSIONAL ETHICS’ INVESTIGATIVE
POWERS; AND PROVIDE PROSECUTORS WITH THE TOOLS NECESSARY TO
EFFECTIVELY INVESTIGATE AND PROSECUTE PUBLIC CORRUPTION
 Task Force on Federal Elections and Ethics Enforcement: Establish a Bicameral,
Bipartisan Task Force on Federal Elections and Ethics Enforcement comprised of 12
Members of Congress, with three members appointed by each of the following: Speaker of the
House, House Minority Leader, Senate Majority Leader, and Senate Minority Leader. Within
one year, the Task Force shall complete an investigation and issue a report and legislative
recommendations addressing:
• The policies, processes and procedures of the Federal Election Commission, including
Commission deadlock on enforcement actions; the failure of the Commission to complete
a post-Citizens United rulemaking; options for replacing the six-Member Commission with
a different governing structure, including a single administrator; requiring random audits of
political committees; and strengthening Commission enforcement powers.
• The establishment of a independent and bipartisan office of congressional ethics in the
Senate similar to the Office of Congressional Ethics currently operating in the House, as
well as expanding the investigative powers of the Office of Congressional Ethics to
include, inter alia, subpoena authority and an expanded timeframe for conducting
investigations.
• The Internal Revenue Service’s enforcement of the “primary purpose” tests for 501(c)
organizations.
• Until the recommendations of the Task Force are enacted, the following intermediate
steps will be taken:
 A seventh Commissioner of the Federal Election Commission will be appointed by
the President, by and with the advice and consent of the U.S. Senate. Such
commissioner shall not, in the previous five years, have been a federally registered
lobbyist, a member of a political party, or a former employee or contractor of a
federally registered political committee, including any candidate or political party
committee.
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 Except for final action of going to court or entering into an agreement, a tie vote on
investigations shall be broken by the Office of General Counsel.
 Random audits of political committees by the Federal Election Commission shall be
required.
 Public Corruption Prosecution Improvements Act of 20125: Enact the Public Corruption
Prosecution Improvements Act of 2012. Sponsored by Senator Leahy (D-VT) and Senator
Cornyn (R-TX), the Public Corruption Prosecution Improvements Act of 2012 was included in
the Senate-passed version of the STOCK Act, and was based on an identical bill passed by
the Senate Judiciary Committee. Highlights:
• Broadens the definition of “official act” and reaffirms that public officials may not accept
anything worth more than $1,000, other than as specifically allowed by other rules and
regulations, given to them because of their official position.6
• Increases the maximum penalties for public corruption related offenses.
• Expands the ability of wiretaps to be used in public corruption related investigations.
• Expands the honest services fraud statute to include undisclosed self-dealing by public
officials.7
5 The Public Corruption Prosecution Improvements Act of 2012 can be found on pages 41-58 of S. 2038, 112th Cong. (2012)
available here: http://www.gpo.gov/fdsys/pkg/BILLS-112s2038es/pdf/BILLS-112s2038es.pdf.
6 This provision is meant to address the D.C. Circuit’s ruling in Valdes v. United States, 475 F.3d 1319, 1329 (D.C. Cir. 2007) (en
banc), and the Supreme Court’s ruling in United States v. Sun-Diamond Growers, 526 U.S. 398 (1999).
7 This provision is meant to address the Supreme Court’s ruling in Skilling v. United States, 130 S. Ct. 2896 (2010).

Statute to Stop Traffic Cameras

This legislation was drafted for the city of Tucson but can be amended for any city. 

We are looking for people to step up and assist getting this and other initiatives on the ballot.

http://www.activismtruth.com


                                                                               Tucson, Arizona _____________
                                                                                                               (Date)

                                                                                Page 1 of 1


CITY OF TUCSON – INITIATIVE PETITION

To the Honorable Mayor and Council, and the City Clerk of the City of Tucson, State of Arizona:

We, the undersigned, residents of the City of Tucson, Arizona and duly qualified electors
therein, do hereby submit and propose to you, for adoption, the following ordinance, and
request that action be taken by you relative to the adoption or rejection of such proposed
ordinance, at the earliest possible moment, and that the same be forthwith submitted to a vote
of the people, to-wit:

OFFICIAL TITLE:  TRAFFIC JUSTICE

AMENDING CHAPTER 20, ARTICLE I, SECTION 20-2 OF THE CITY CODE AND LIMITING THE
DEFINITION OF VIOLATION AND RESTRICTING CITY ACTIONS.

Text of the Proposed Amendment

Be it enacted by the people of the City of Tucson:

The following amendment to Chapter 20, Article I, Section 20-2 of the City Code

Sec. 20-2.  Civil traffic violations

It shall be a civil traffic violation for any person, firm or corporation to violate any of the
provisions of article I, II, III, IV, V, or VI of this chapter.

Be amended by adding the following new paragraphs:

EXCEPT THAT IT SHALL NOT BE A VIOLATION IF EVIDENCE IS GATHERED THROUGH THE
USE OF ANY AUTOMATIC PHOTO RED LIGHT CAMERAS OR ANY AUTOMATIC PHOTO
SPEED CAMERAS SUCH AS WERE IN USE BY A PRIVATE CONTRACTOR FOR TRAFFIC
ENFORCEMENT ON BEHALF OF THE CITY IN 2012.

THE CITY SHALL NOT USE, OR CONTRACT FOR THE USE OF, SUCH TECHNOLOGY OR
ANY TECHNOLOGY FOR TRAFFIC CONTROL THAT DOES NOT PRODUCE A HUMAN, ON-
SITE, EYEWITNESS TO VIOLATIONS WHO IS ABLE TO TESTIFY IN COURT.  
                                                                            



                                                                            PETITION NUMBER   ______________

Right to a Binding Citizen Grand Jury Process.

Right to Citizen Grand Jury

This initiative would open up the rights for binding citizen grand jury's. Any state with the initiative process can implement this proposal and open the frontier of citizen checks and balances against crimes of the judicial system, the government, or major corporations when the current judicial system is ensuring the justice we need. 

Montana residents propose Citizen Grand Jury

The ballot title of the measure read:

This initiative amends the Montana Constitution to allow one-half of one percent of a county’s voters to summon by petition a citizen grand jury to investigate and charge crimes. A citizen grand jury can investigate any crime and can open certain proceedings to the public. A county attorney must prosecute any crime charged by a citizen grand jury or may be indicted for failing to do so. A citizen grand jury also may hire a private lawyer, paid by the county, to prosecute any crime it charges.
[ ] FOR amending the Montana Constitution to allow citizens to summon by petition a grand jury to investigate any crime and prosecute any crime it charges.
[ ] AGAINST amending the Montana Constitution to allow citizens to summon by petition a grand jury to investigate any crime and prosecute any crime it charges.

Constitutional changes

Article II, Section 20 of the Montana Constitution would have been amended to read:^[5]
Section 20. Initiation of proceedings.

(1) Criminal offenses within the jurisdiction of any court inferior to the district court shall be prosecuted by complaint. All criminal actions in district court, except those on appeal, shall be prosecuted either by information, after examination and commitment by a magistrate or after leave granted by the court, or by indictment without such examination, commitment or leave.

(2) A grand jury shall consist of eleven persons, of whom eight must concur to find an indictment.

(3) A grand jury shall be drawn and summoned at the discretion and order of the district judge or as follows:

(a) Whenever one-half of one percent of the registered electors of a county have signed a petition to summon a grand jury and have submitted the petition signatures to the county election administrator, a grand jury shall be summoned and empanelled by the judge of the district court for the county receiving the petition. A grand jury so summoned and empanelled shall:

(i) first consider any cause advanced by those who have brought and signed the petition, but the grand jury is the sole judge of its duration and the breadth and depth of its inquiry; and

(ii) conduct selected open proceedings to allow the public to present information or ask questions, and conduct other proceedings open or closed as it chooses, consistent with Article II, Sections 8,9, and 10 of the Constitution of the State of Montana.

(b) An indictment brought by a grand jury must be prosecuted by the county attorney for the county in which an alleged offense occurred, regardless of prosecutorial discretion. A county attorney who fails to prosecute within 90 days an indictment being handed down by the grand jury may be indicted for obstruction of justice and official misconduct.

(c) If a grand jury summoned under this section is unable to obtain the prosecution of an indictment by the county attorney of the county where the alleged offense occurred, the grand jury may compel prosecutorial assistance from the attorney general or the grand jury may retain a private prosecutor whose fees shall be a lawful claim against the county where the alleged offense occurred.

(d) A grand jury summoned under this section may, in addition to indictments, seek court orders to remedy situations under its investigation and may hire counsel independent of the county attorney’s office.

This section currently reads:

(1) Criminal offenses within the jurisdiction of any court inferior to the district court shall be prosecuted by complaint. All criminal actions in district court, except those on appeal, shall be prosecuted either by information, after examination and commitment by a magistrate or after leave granted by the court, or by indictment without such examination, commitment or leave.

(2) A grand jury shall consist of eleven persons, of whom eight must concur to find an indictment. A grand jury shall be drawn and summoned only at the discretion and order of the district judge. 

 

Commentary on this proposal can be found here: 

http://www.flatheadbeacon.com/articles/article/in_conservative_circles_calls_for_citizen_grand_juries_grow/14634

 

Much press will critisizing this system, however, we have only once choice when the current legal system is paid off and corrupted, either we take law into the hands of a civilized citizenry, or we continue to leave it in the hands of a select few good old boys who may be working for the interest of capital and corporations over basic fundamental rights. 

State Bank Initiative

Here are two State Bank Initiatives. The first was created by Jeff Heaton of California creator of an organization identical in goals as my group called Occupy the Elections. I will be looking for more legislation as I understand North Dakota has a State Bank that was created originally by citizen ballot initiative, not the politicians. This should be of no surprise. This is evidence that the most effective political actions have been carried out by citizen movement. The and People in Colorado  have their own initiative posted below as well. I need more researches to help investigate any initiatives you would care about.

The state bank is important because it stops fractional reserve lending and debt based economies indebted to the Federal Reserve. North Dakota is the only state that is not in debt and they have a thriving agrarian economy. 

The State Bank Initiative of North Dakota was created in the early 1900's as a result of upset farmers realizing they would loose their jobs to out of state grain deals through rail roads, financed by the Federal Reserve. They created a group called the Non-Partisan League and secured ballot access at a time when they needed 30%+ of the voters to sign the petitions, almost 600% more than today's requirement, all at a time before cars and phones. If they legally nullified the Federal Reserve, so can we. Our economies would be so much wealthier, we would have funding for students and local businesses, and society would thrive. 


Thomas Jefferson said:

“The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.” 

The FED finances wall street, not main street. A state bank would keep our states economy funneling resources into main street needs. It is the only solution short of electing an anti-federal reserve candidate as president several years from now. Why wait when we can nullify the FED on our own and save our economies?
Join me and learn about what I'm doing at http://www.ActivismTruth.com

 For More Info on the State Bank Initiative. Check out The Secret of Oz by Bill Still creator of the well known film exposing the Federal Reserve titled Money Masters.

12/24/11 Proposed Ballot Initiative

TO THE HONORABLE SECRETARY OF STATE OF CALIFORNIA
We, the undersigned, registered, qualified voters of California (“state”), residents of  ______________ County (or City and County of _______________), hereby propose amendments to the Constitution of California, relating to the establishment and financing of a state-owned  bank, and petition the Secretary of State to submit the same to the voters of California for their adoption or rejection at the next succeeding general election or at any special statewide election held prior to that general election or as otherwise provided by law. The proposed constitutional amendments (Establishment of the Peoples Bank of California) read as follows:
SECTION 1. The people find and declare the following:

(a) Access to money is vitally important for the health, security, and well-being of all individuals and businesses in the state.  
(b)  Under the current system of private ownership of the money creation process, the banks that own the Federal Reserve System periodically expand the money supply to create assets and then contract the money supply to acquire those assets, serving their own interests and leaving the assets of the majority of individuals and businesses at risk.

 (c) The State of North Dakota has established a highly successful model of a state bank by creating and operating the Bank of North Dakota, which operates counter-cyclically to the private banking system, resulting in the lowest unemployment, highest budget surplus, least bank failures, and highest concentration of community banks per capita in the U.S. 

(d) Based on the North Dakota model, through the establishment and operation of the Peoples Bank of California, the Legislature and the residents of the State will have access to over $100 billion in capital to encourage economic development policy initiatives in a responsive and efficient manner.

 (e) As state and local governmental entities choose to deposit funds in the Peoples Bank of California, adding to the bank's capital, the bank will be able to use those funds to invest in the State's economy.

SECTION  2. Section 27.5 is added to Article XIII of the California Constitution, to read:

SECTION  27.5. (a) The legislature, a majority of the membership of each house concurring, shall impose a tax on all operators for the privilege of extracting, by any means, oil or gas from the earth or water in the State. The tax shall be imposed at a rate of not less than 1 percent of the gross value of the oil or gas extracted. 

 (b) As used in this section, an operator is any person that, by virtue of ownership, or under the authority of a lease or any other agreement, has the right to drill, operate, maintain, or control any oil or gas well in the earth or water in the State.
(c) An operator shall be solely liable for the tax and may not cause, either directly or indirectly, any other person to be liable or responsible for that tax. A violation of this subdivision shall be punishable by a monetary fine of not less than two times the amount of the tax liability and by any other sanction prescribed by statute.
(d) The tax to be imposed pursuant to this section shall be in addition to any other taxes imposed by law.
(e) All taxes, penalties, and other amounts collected pursuant to this section shall be transferred to the Peoples Bank of California, established by statute pursuant to Article XVII, to assure an adequate source of capital for the bank.

SEC. 3. Article XVII is added to the California Constitution, to read:

Article XVII. The Peoples Bank of California
SECTION 1. The State shall engage in the business of banking and, for that purpose, the Legislature, a majority of the membership of each house concurring, shall enact legislation establishing a system of banking that is owned, controlled, and operated by the State, which shall be known as the Peoples Bank of California (hereafter the Bank), pursuant to and consistent with the provisions of this article.

SECTION.  2.  The mission and purposes of the Bank shall be to promote agriculture, education, community development, economic development, commerce, and industry in California. In this role, the Bank will act as a funding resource and regulatory advisor in partnership with other financial institutions, economic development groups, and guaranty agencies.

 SECTION. 3. (a) The Bank shall be governed and operated by an advisory board of directors, which shall consist of 11 voting members, including the Treasurer of the State. The Treasurer shall also serve as chairperson of the board.
(b) The Governor shall appoint ten members of the board of directors, other than the Treasurer. At least three members must be representatives from banks chartered in the state. At least three members must be residents of the state who are not employed by, serve on the board of directors of, or have a substantial ownership interest in any financial institution. The director is an ex officio member.
(c) (1) the members of the board of directors, other than the Treasurer, shall serve four-year terms. Five of the original board members must be appointed to serve an initial term of two years.  All subsequent terms are for four years.
(d) The Governor may remove a board member, other than the Treasurer, for cause, as prescribed by statute.
(e) If a member of the board is removed or resigns before the end of his or her term, the Governor may appoint a new member to serve the remainder of that term.
(f) Members of the board of directors shall serve without compensation, except that the Legislature shall provide by statute for reimbursement of reasonable expenses.

SECTION. 4. (a) Except as otherwise provided in this article, the Bank may exercise any power or authority vested in a state-chartered bank.
(b) The President of the bank and executive staff shall locate and maintain the Bank's places of business, which shall be within the State. The Bank shall not outsource any of its operations to any correctional facility or to any bank not registered as a state chartered bank, or to any contractor in any other state or nation.
(c) The Bank may perform the functions and render the services of a clearinghouse for banks doing business in the State, including providing domestic and foreign exchange, and may rediscount debt instruments on such terms as the board shall provide.
(d) The President of the Bank and executive staff  may adopt, by regulation, and enforce rules, policies, and procedures that it deems necessary or appropriate for the transaction of the business of the Bank, including, but not limited to, rules, policies, and procedures regarding the following:

(1) Management performance, customer service, and internal accounting methods, procedures, and operating policies.
(2) Eligibility for borrowing, criteria for evaluating loan applications, aggregate spending limits for a single borrower, and other limitations on loans, consistent with the Bank's mission, this article, and the statutes implementing this article.
(3) Accuracy of financial reporting and compliance with applicable laws and regulations.
(4) Overall risk management strategy.

(e) The Board of Directors may set policy; hire, evaluate or fire the bank President and executive staff; and serve on committees that either operate the board, or oversee audits.

SECTION. 5. (a) The Treasurer shall appoint a president of the Bank and additional Bank officers, who will be civil servants, and may remove the president or any officer for any reason. The board shall make recommendations to the Treasurer regarding the appointment of officers.
(b) The Legislature, by statute, shall establish the compensation of the Bank president and officers.

(c) A director or officer of the Bank, while holding that position, may not borrow money or otherwise receive any extension of credit from the Bank.
(d) The Bank shall indemnify and hold harmless each director, officer, and employee of the Bank against all reasonable and documented costs and expenses incurred by him or her in connection with the defense of any action, suit, or proceeding in which he or she is made a party by reason of his or her position as a director, officer, or employee of the Bank, except to the extent that he or she has been adjudicated in such action, suit, or proceeding to be liable by reason of willful misconduct in the performance of his or her duties. This indemnification shall not be exclusive of other rights to which a director, officer, or employee may be entitled as a matter of law or equity.

SECtion. 6. (a) Except as may be provided in subdivision (b), all state funds shall be deposited in the Bank.
(b) (1) The Pooled Money Investment Account, the Public Employees' Retirement System, any other public retirement system, any municipal utility district, school district, hospital district, city, county, or city and county, and any other local governing body, taxing authority, or political subdivision of the State may establish and maintain an account with the Bank and may deposit any of its operating funds into that account.
(2) Any entity described in paragraph (1) may also establish and maintain a capital investment account with the Bank and may deposit any of its investment funds into that account as a capital investment.
(3) The Local Agency Investment Fund may establish and maintain a capital investment account with the Bank into which any funds in the Local Agency Investment Fund may be deposited.
(4) Funds deposited in accounts pursuant to this subdivision shall be expended by the depositing entity only as authorized by law.
(c) (1) Except as provided in paragraph (2), any private person or entity may establish and maintain an account with the Bank and may deposit any of its funds in that account.

(2) (A) The Bank may establish and maintain a demand deposit account or checking account for a resident of the State. To establish an account, a resident of the State shall appear in person at an office of the Bank.
(B) The Bank may establish and maintain a savings account, certificate of deposit, or investment account for any citizen of the United States.
(d) All funds deposited in the Bank shall be guaranteed by the State in a manner prescribed by statute.
(e) The Bank shall provide accountholders with electronic access to their accounts, subject to federal requirements.
(0 The obligation of the Bank to pay principal, interest, and any other return on investment shall not be subject to Section 1 of Article XVI.
(g) Nothing in this article shall alter the requirement applicable to state entities contained in Section 7 of Article XVI.
SEC. 7. (a) All income earned by the Bank for its own account on state moneys that are deposited in or invested with the Bank to the credit of the State shall be credited to and become a part of the revenues and income of the Bank.
(b) All moneys received by the Bank from the taxes, penalties, and other amounts imposed pursuant Section 27.5 of Article XIII shall become part of the revenues and income of the Bank and shall be used as operating capital, consistent with this article and the statutes implementing this article.
(c) The Bank's annual operating budget shall be subject to appropriation by the Legislature in the annual Budget Act.

(d) Notwithstanding Section 1 of Article XVI or any other provision of this Constitution, the Bank may borrow funds from the Federal Reserve System in times when, in the judgment of the board, the Bank requires additional operating capital.
(e) The Bank may invest its funds in any manner that ensures appropriate cash management and is consistent with the Bank's mission and purposes.
(f) The Bank shall be exempt from payment of any fees or taxes levied by the State or any political subdivision of the State.
(g) Except as provided in subdivision (c), all revenues, income, and other moneys of the Bank shall be continuously appropriated to the Bank for purposes of this article and the statutes implementing this article.
SEC. 8. (a) Notwithstanding any other provision of this Constitution, the Treasurer and the Controller may, when the balance in the General Fund is insufficient to meet anticipated authorized expenditures, execute and issue on behalf of the State evidences of indebtedness on the General Fund. As a condition precedent to the issuance and sale of the evidences of indebtedness, the Treasurer shall obtain a statement from the Controller and the Franchise Tax Board certifying that the anticipated General Fund revenues for the balance of the fiscal year in which the evidences of indebtedness are to be issued will exceed the principal amount and interest on the evidences of indebtedness to be issued. The Bank may, in turn, make loans to the General Fund by the purchase of the evidences of indebtedness. After any evidences of indebtedness have been sold to the Bank, the Treasurer shall establish a fund for the repayment of the indebtedness upon maturity and shall place all available General Fund revenues into the fund until the fund contains a sufficient balance for the repayment of the indebtedness when due, which moneys are hereby appropriated for that purpose. No interest shall accrue on any loans made pursuant to this subdivision.
(b) The Bank may purchase or refinance other outstanding evidences of indebtedness of the State at rates and upon such terms as approved by the board.
(c) The Bank may make loans to, or purchase, guarantee, or hold loans of, any bank doing business in the State.
(d) (1)  The Bank may make loans, at favorable rates relative to prevailing market rates, to businesses and organizations seeking to finance viable projects that the Board of Directors deems to be consistent with the Bank's mission and purposes.  The Board of Directors shall not oversee individual loans.

(2) In its lending activities pursuant to this subdivision, the Bank may act in partnership with other financial institutions, economic development groups, research and development groups, governmental bodies, private businesses, cooperative-owned businesses, individuals, families, and guaranty agencies.
(e) Notwithstanding subdivision (d), the Bank shall not make a new loan to any entity if 20% or more of total employee compensation is paid to employees or contractors who reside outside the State.
 (f) The Bank may make low-interest loans to a municipal utility district, school district, hospital district, city, county, or city and county, or any other taxing authority within the State to finance new construction or maintenance of facilities consistent with the Bank's mission and purpose.

(g) The Bank shall not engage in proprietary trading or securitization of residential loans or debt instruments, as well as trading in commodities, futures and similar speculative instruments.
SECTION. 9. (a) By December 1 of each year, the Treasurer shall submit a report to the Legislature regarding the operations of the Bank during its most recently completed fiscal year. The report may include recommendations by the Treasurer to improve the Bank's operations with respect to achieving the Bank's mission and purposes. The Legislature may, by statute, enact changes to the Bank's mission consistent with that report and this article. The President of the Bank and executive staff may enact changes to the Bank’s operation consistent with that report and this article.
(b) The Bank shall be subject to examination by the Department of Financial Institutions according to the standards and requirements applicable to a state-chartered bank. The Bank shall reimburse the Department of Financial Institutions for its reasonable costs in conducting any examination.
SEC. 10. (a) The board shall meet regularly as a board, and with the officers of the Bank, to review Bank operations. Meetings of the board shall be subject to open meeting laws applicable to state agencies. Any meeting of the board that is open to the public may be broadcast on the Internet or on public access television.
(b) To ensure the transparency of the Bank's operations, and in addition to any other requirements applicable to state agencies relating to access to public records, the following shall be made publicly available on the Internet or by other similar means:
(1) Weekly  summaries of Bank transactions, subject to applicable laws regarding confidentiality of personal information of Bank clients.

(2) An annual statement of the salary of each officer and employee of the Bank, and the aggregate compensation of all officers, as a group, together with the Bank's annual financial statements.
(3) The annual report to the Legislature pursuant to Section 9.

Article XIII.
SECTION. 5. (a) Notwithstanding any other provision of law, the Attorney General shall defend the constitutionality of this act.
(b) The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
- 0 -


This is the Colorado Initiative.

Proposed Constitutional Amendment for the State of Colorado To Establish a Publically-Owned State Bank

To be Numbered as Article X, Section 22

Be it Enacted by the People of the State of Colorado:

Preamble

WHEREAS, the State of Colorado desires to build an economy independent of the ups and downs created by the speculators and financiers that control the money creation and credit regulation processes of the United States; and

WHEREAS, many of the original 13 colonies of the United States and the current state of North Dakota, as well as many nations worldwide, have shown that true prosperity comes from public tax monies deposited into public banks and leveraged in the public interest; now therefore

In the constitution of the state of Colorado, add section 22 to Article X as follows:

(1) ESTABLISHMENT OF STATE-OWNED BANK. THE STATE OF COLORADO HEREBY ESTABLISHES A BANK TO BE OWNED BY THE STATE OF COLORADO. THE BANK IS AUTHORIZED TO LEND MONEY AT INTEREST OR AT NO INTEREST TO PROMOTE SUSTAINABLE DEVELOPMENT, COMMERCE, INDUSTRY, AND AGRICULTURE IN THE STATE AND TO PROMOTE HOME OWNERSHIP, MAINTENANCE AND CONSTRUCTION OF NEEDED INFRASTRUCTURE, EDUCATION, PUBLIC HEALTH AND SAFETY, AND OTHER PURPOSES FOR THE GENERAL WELFARE OF THE CITIZENS OF THE STATE OF COLORADO. THE BANK SHALL HAVE ALL THE POWERS AND AUTHORITY OF OTHER BANKS CHARTERED BY THE STATE OF COLORADO. THE DEBTS AND OBLIGATIONS OF THE BANK ARE BACKED BY THE FULL FAITH AND CREDIT OF THE STATE OF COLORADO. THE REVENUE AND INCOME OF THE BANK SHALL NOT BE LIMITED, NOR SHALL EXPENDITURES AND MANAGEMENT OF ITS REVENUE, INCOME, AND ASSETS BE RESTRICTED, EXCEPT UPON SOUND FINANCIAL AND PUBLIC POLICY CONSIDERATIONS. ALL PROVISIONS OF THIS SECTION ARE SELF-EXECUTING AND SEVERABLE AND SUPERSEDE CONFLICTING STATE CONSTITUTIONAL, STATE STATUTORY, STATE CHARTERED, OR OTHER STATE OR LOCAL PROVISIONS.

(2) GOVERNANCE OF STATE BANK: ELECTED OFFICIALS: THE BOARD OF DIRECTORS OF THE BANK SHALL CONSIST OF FIVE MEMBERS WHO SHALL BE ELECTED AS FOLLOWS: (A) THE STATE LEGISLATURE SHALL, IN A TIMELY FASHION NOT TO EXCEED THREE MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS AMENDMENT, DIVIDE THE STATE INTO FIVE DISTRICTS, BY GROUPING THE STATE HOUSE DISTRICTS INTO FIVE CONTIGUOUS DISTRICTS OF ROUGHLY EQUAL POPULATION, WITH DUE RESPECT TO THE RURAL AND URBAN CHARACTERISTICS OF SAID DISTRICTS. (B) THE INITIAL ELECTION SHALL BE IN AN ODD-NUMBERED YEAR AND INCLUDE CANDIDATES FOR ALL FIVE DISTRICTS, TWO OF WHOM SHALL BE ELECTED FOR AN INITIAL TERM OF TWO YEARS AND THREE OF WHOM SHALL BE ELECTED FOR A TERM OF FOUR YEARS. TWO YEARS LATER, WHEN THE TWO-YEAR TERMS EXPIRE, SAID TWO DISTRICTS SHALL ELECT MEMBERS TO TERMS OF FOUR YEARS. FOUR YEARS AFTER THE INITIAL VOTE, SAID THREE DISTRICTS SHALL ELECT MEMBERS FOR FOUR YEAR TERMS. THEREAFTER, ALL TERMS FOR ALL DISTRICTS SHALL BE FOR FOUR YEARS, (C) CANDIDATES MUST BE CITIZENS OF THE STATE OF COLORADO FOR AT LEAST FIVE YEARS BEFORE THEY CAN DECLARE THEIR CANDIDACY AND MUST BE RESIDENTS OF THEIR DISTRICT FOR TWO YEARS. (D) TO BE INCLUDED ON THE BALLOT, CANDIDATES SHALL REGISTER WITH THE SECRETARY OF STATE’S OFFICE, WHICH SHALL PROVIDE AN AUTOMATED ONLINE PROCESS THAT INCLUDES THE OPPORTUNITY FOR EACH CANDIDATE TO LIST THEIR QUALIFICATIONS AND REASONS WHY THEY WANT TO SERVE. (E) IN THE EVENT THAT NO CANDIDATE WITHIN A DISTRICT RECEIVES A MAJORITY OF VOTES FROM THAT DISTRICT, THE SECRETARY OF STATE SHALL HOLD A RUN-OFF ELECTION BETWEEN THE TWO CANDIDATES RECEIVING THE MOST VOTES.

(3) GOVERNANCE OF STATE BANK: MANAGEMENT, EMPLOYEES, AND ADVISORS: THE BOARD OF DIRECTORS SHALL RECEIVE ADVISORY INPUT ON THE GENERAL DIRECTION OF THE BANK FROM A NINE-MEMBER BOARD OF ADVISORS WHOSE MEMBERS REPRESENT A BROAD CROSS-SECTION OF THE STATE, INCLUDING BUSINESS AND INDUSTRY, FARMING, TECHNOLOGY, FINANCE, SMALL BUSINESS, EDUCATION, LABOR, AND EMPLOYMENT, TO BE APPOINTED BY THE GOVERNOR, SUBJECT TO CONFIRMATION BY A MAJORITY OF THE SENATE OF THE GENERAL ASSEMBLY OF THE STATE OF COLORADO. MEMBERS OF THE BOARD OF ADVISORS SHALL BE NOMINATED BY VARIOUS GROUPS WITHIN EACH AREA OF INTEREST IN A MANNER TO BE DETERMINED BY THE GENERAL ASSEMBLY. THE BOARD OF DIRECTORS SHALL ALSO RECEIVE REGULAR FINANCIAL REPORTS, NO LESS THAN ONCE A MONTH, FROM THE MANAGEMENT OF THE BANK. THE FINANCES OF THE BANK SHALL BE AUDITED ANNUALLY BY AN INDEPENDENT ACCOUNTING FIRM FREE FROM ANY CONFLICTS OF INTEREST WITH THE BANK OR STATE. EXCEPT FOR THE PRESIDENT OF THE BANK, WHO SHALL BE APPOINTED BY THE BOARD OF DIRECTORS AND SERVE AT THEIR PLEASURE, THE MANAGEMENT AND EMPLOYEES OF THE BANK SHALL BE HIRED ACCORDING TO THE STANDARDS OF THE STATE PERSONNEL SYSTEM, WHICH SHALL ENDEAVOR TO HIRE THE BEST QUALIFIED PERSONS AND COMPENSATE THEM ACCORDINGLY BY SALARY. NO EMPLOYEES OF THE BANK SHALL RECEIVE COMPENSATION IN THE FORM OF COMMISSIONS AND BONUSES. THE PRESIDENT OF THE BANK MUST HAVE SUBSTANTIAL EXPERIENCE IN BANKING. THE MANAGEMENT OF THE BANK SHALL BE RESPONSIBLE FOR THE DAY-TO-DAY OPERATIONS OF THE BANK, WHICH SHALL FOLLOW THE GENERAL OBJECTIVES SET BY THE BOARD OF DIRECTORS.

(4) RULES AND REGULATIONS OF STATE BANK. AFTER PASSAGE OF THIS AMENDMENT AND THE INITIAL ELECTION OF THE BOARD OF DIRECTORS, THE INITIAL MANAGEMENT OF THE BANK, CONSISTING OF THE TOP FIVE OPERATING OFFICIALS OF THE BANK, INCLUDING THE PRESIDENT APPOINTED BY THE BOARD OF DIRECTORS AND THOSE HIRED BY THE PRESIDENT UNDER THE PROTOCOLS OF THE STATE PERSONNEL SYSTEM, SHALL BE CHARGED WITH DRAFTING THE RULES AND REGULATIONS OF THE BANK, SUBJECT TO CONSIDERATION OF RECOMMENDATIONS BY THE ADVISORY BOARD AND APPROVAL OF THE BOARD OF DIRECTORS OF THE BANK. PRIOR TO SUCH APPROVAL, THE RULES AND REGULATIONS PROMULGATED BY SAID FIVE OPERATING OFFICIALS SHALL BE EFFECTIVE ON AN INTERIM BASIS.

(5) CAPITALIZATION OF STATE BANK: THE CAPITALIZATION OF THE BANK SHALL INCLUDE ALL TAX AND OTHER REVENUES AND FUNDS OF THE STATE, INCLUDING OTHER FUNDS SUCH AS MAY BE COLLECTED CURRENTLY FOR THE STATE BY OTHER BANKS, SUBJECT TO SOUND BANKING PRACTICES AND THE RULES AND REGULATIONS OF THE STATE BANK. SPECIFICALLY ALLOCATED FUNDS AND OTHER ASSETS OF THE STATE NORMALLY HELD BY FINANCIAL INSTITUTIONS SHALL BE DEPOSITED AND HELD BY THE STATE BANK.

(6) TRANSFER OF FUNDS FROM THE STATE BANK TO THE GENERAL FUND OF THE STATE OF COLORADO. THE STATE BANK MAY TRANSFER FUNDS, FROM TIME TO TIME, TO THE GENERAL FUND OF THE STATE OF COLORADO. SUCH AMOUNTS SHALL NOT BE SUBJECT TO OR COUNTED AGAINST ANY LIMITATIONS IMPOSED BY ANY STATE CONSTITUTIONAL, STATE STATUTORY, STATE CHARTERED, OR OTHER STATE OR LOCAL PROVISIONS.