If you want to run for local office, be prepared to open your finances for inspection
A new Florida transparency law in 2024 will require candidates for local elected office to file a full and public disclosure at the time of qualifying. They will have to show their federal tax returns as well.
The law, known as SB 774 and concerning ethics requirements, goes into effect Jan. 1.
What the new law says
SB 774, sponsored by Sen. Jason Brodeur, R-Lake Mary, says that all candidates for specified local offices have to file a Form 6 financial disclosure instead of the Form 1 they are currently required to file. Form 6 is more detailed and lowers the threshold for what has to be reported.
For instance, candidates or local office holders that had to previously disclose liabilities over $10,000 owed at any point of the year and names the creditors now have to disclose liabilities over $1,000, name the creditors and give the amounts owed.
Who does this apply to? This means commissioners and mayors of cities, villages and towns, and other local elected officials will now have to file a Form 6 to disclose their net worth, the value of each asset, liability and income sources over $1,000, and provide their most recent federal tax returns.
READ MORE: ‘Move over’ law is changing soon for drivers in Florida. What to know about new rules
READ MORE: Four new Florida laws take effect in January. Here’s what they may mean for you
How is the law different?
According to the Senate’s bill analysis this is how the new law will be applied:
▪ Previously, candidates for city commissioner and mayor only had to file the less detailed disclosure Form 1.
▪ People holding positions including governor, lieutenant governor, cabinet members, legislators, state attorneys, public defenders and clerks of circuit courts had to, and still have to, file a Form 6. Others who also had to file a Form 6, which can be done electronically, include sheriffs, tax collectors, property appraisers, election supervisors, county commissioners, elected superintendents of schools, school board members.
▪ The new law deletes a prohibition on including a federal income tax return or copy in a financial disclosure. You will now have to disclose your tax return.
▪ The new law requires commissioners of community redevelopment agencies to complete annual ethics training.
▪ Members of the Commission on Ethics will also have to file full and public disclosures.
▪ The new law increases the maximum civil penalty for violations of the code of ethics to $20,000 from $10,000.
How Form 1 and Form 6 differ
According to the bill analysis and the Florida League of Cities, there are some key differences between Form 1 and Form 6 that include:
Net worth:
▪ Form 1 asks for a review of your finances over the course of the year. Form 6 wants a snapshot of your finances on Dec. 31 or a more recent day of your choosing.
▪ Form 1 has no net worth disclosure. Form 6 requires disclose of net worth on Dec. 31 or a more recent day.
Disclosure of assets:
▪ Form 1 asks for declaration of intangible assets over $10,000 individually. Form 6 wants disclosure of assets over $1,000 individually and household goods and personal effects collectively.
Disclosure of liabilities:
▪ Form 1 requires disclosure of liabilities over $10,000 owed at any point of the year and names the creditors. Form 6 requires disclosure of liabilities over $1,000 on a date chosen by the filer and names the creditors and the amounts.
Note: Both forms provide exclusions for credit cards, indebtedness on a life insurance policy, taxes owed not reduced to a judgment and contingent liabilities.
Primary sources of income:
▪ Form 1 filers must disclose all sources of income in excess of $2,500, excluding public salary. Form 6 requires disclosure of income in excess of $1,000, and disclose public salary
▪ Form 1 wants all sources of income from a business entity that the official had a material interest in where their gross income was in excess of $5,000 and in excess of 10% of the businesses gross income. Form 6 reduces the gross income figure to an excess of $1,000.
Push back
The new financial transparency SB 774 law has led some elected commissioners and council members in Florida to threaten resignation rather than release the required details, WPTV in West Palm Beach reported in December. “I think that’s a complete invasion of your privacy,” Loxahatchee Groves Mayor Laura Danowski said.
State Rep. Spencer Roach, R-North Fort Myers, who supports the bill, told the station: “To those people who are contemplating resigning, or have resigned, I would have one simple question for them: ‘What is it that you are trying to hide? Or what is it that you don’t want your constituents to know?’ And I would posit that those are probably the very officials that this bill is designed to target.”
