HF 2662

as introduced - 88th Legislature (2013 - 2014) Posted on 03/03/2014 03:10pm

A bill for an act
relating to campaign finance; requiring notice and consent for certain political
activities by corporations; providing penalties; amending Minnesota Statutes
2012, section 211B.15, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapters 10A; 211B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [10A.205] CORPORATE POLITICAL ACTIVITY REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Receipt of reports. new text end

new text begin The board must maintain a copy of each
shareholder notification report received under section 211B.155 on the board's Web site.
new text end

new text begin Subd. 2. new text end

new text begin Annual audit. new text end

new text begin On an annual basis, the board shall randomly audit the
extent of compliance or noncompliance by corporations required to provide shareholder
notification under section 211B.155. No later than June 30 of each year, the board shall
submit a report to the legislature on the results of audits conducted in the preceding year.
An audit required by this subdivision shall be conducted in the manner provided for audits
and investigations by the board under section 10A.02, subdivision 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 211B.15, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Shareholder consent. new text end

new text begin (a) A corporation may not engage in contribution
or expenditure activity for political purposes that, in the aggregate, exceeds $10,000 in a
calendar year, unless the shareholders of the corporation have approved the contribution
or expenditure activity by majority vote. The vote must be conducted according to
the rules and bylaws of the corporation, and may authorize a specific contribution or
expenditure, or may authorize a total budget for all contribution and expenditure activity
by the corporation in a calendar year. The date and result of a vote required under this
subdivision must be included in the shareholder report required by section 10A.205.
new text end

new text begin (b) As used in this subdivision, "shareholders" means, in the case of a corporation
registered to do business in this state, all shareholders of the corporation residing in
the state; in the case of a corporation incorporated in this state, all shareholders of the
corporation; and in the case of a partnership registered to do business in this state, all
partners.
new text end

Sec. 3.

new text begin [211B.155] CORPORATE POLITICAL ACTIVITY; NOTIFICATION TO
SHAREHOLDERS AND PUBLIC REPORT REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "corporation" has the meaning provided in section 211B.15, subdivision 1; and
new text end

new text begin (2) "shareholders" has the meaning provided in section 211B.15, subdivision 4a.
new text end

new text begin Subd. 2. new text end

new text begin Notification to shareholders. new text end

new text begin (a) At least quarterly, a corporation that
directly or indirectly makes a contribution or expenditure for political purposes must notify
the corporation's shareholders in writing of the nature of its contribution and expenditure
activity during the previous quarter. For purposes of this section, a corporation makes a
contribution or expenditure if the contribution or expenditure is funded through its general
corporate treasury, a separate segregated fund, or any other entity or account established
and controlled by the corporation.
new text end

new text begin (b) A notification required by this section must contain:
new text end

new text begin (1) the date and amount of each contribution and expenditure;
new text end

new text begin (2) if the contribution or expenditure was made to support or oppose a candidate for
public office, the office sought by the candidate, the candidate's political party affiliation,
and whether the contribution or expenditure was made in support of, or in opposition to,
the candidate;
new text end

new text begin (3) if the contribution or expenditure was made to support or oppose a ballot
question, a description of the ballot question, and whether the contribution or expenditure
was made in support of, or in opposition to, the question;
new text end

new text begin (4) if the contribution or expenditure was made to advocate or raise awareness about
a policy issue, the nature of the issue, and the corporation's position on the issue;
new text end

new text begin (5) if applicable, the date and result of any shareholder votes required to be
conducted under section 211B.15, subdivision 4a, and the amount and nature of activity
authorized by the vote; and
new text end

new text begin (6) the name of any corporate officer directly advocating for or approving the
corporation's involvement in support or opposition to the candidate, ballot question, or
policy issue.
new text end

new text begin (c) A corporation required to provide a notification to shareholders under this section
must make a copy of the notification accessible on the corporation's Web site for at least
one year following the date of the notification.
new text end

new text begin Subd. 3. new text end

new text begin Public report. new text end

new text begin A corporation required to provide a notification to
shareholders under this section must provide a copy of the notification to the Campaign
Finance and Public Disclosure Board, subject to the requirements and penalties provided
in section 10A.025 for filing reports.
new text end

new text begin Subd. 4. new text end

new text begin Penalty. new text end

new text begin A corporation convicted of violating this section is subject to the
penalties provided in section 211B.15, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2014, and applies to
contributions and expenditures made on or after that date.
new text end