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Ethics bill would lower state beneficial-interest threshold to match municipal standard; sponsor warns of weakened oversight under prior change
Summary
House Bill 2,352 would reduce the ownership threshold that triggers disclosure and recusal from 10% to 1%, aligning state law with municipal code; Representative Paulette said the higher 10% threshold adopted last year weakens public trust and conflicts with the state constitution’s disclosure duties.
The committee heard House Bill 2,352, which would amend state ethics laws to make a beneficial interest in a transaction a violation when a state officer or employee holds 1% or more (instead of the current 10%) of an entity involved in that transaction.
Desiree (OPR staff) summarized current law and the proposed change, explaining that municipal officers have long used a 1% threshold for disclosure and recusal and the bill would align state standards with that municipal provision.
Representative Paulette urged support, saying the bill restores the standard legislators and municipal officials historically used. "Is it truly not a beneficial interest and a potential conflict of interest if, as legislators, we're deciding where a highway interchange is, and we have a 9% interest in the property at the highway interchange?" she asked, arguing the higher 10% bar allows potential conflicts to go undisclosed.
The hearing concluded with no committee vote recorded in the transcript.
