HF 117

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/13/2023 06:49pm

A bill for an act
relating to campaign finance; prohibiting certain political activities by
foreign-influenced corporations; requiring a certification of compliance; prohibiting
candidates from accepting certain contributions; amending Minnesota Statutes
2022, sections 10A.27, subdivision 11; 211B.15, subdivisions 1, 7b, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 10A.27, subdivision 11, is amended to read:

Subd. 11.

Contributions from certain types of contributors.

new text begin (a) new text end A candidate must not
permit the candidate's principal campaign committee to accept a contribution from a political
committee, political fund, lobbyist, or association not registered with the board if the
contribution will cause the aggregate contributions from those types of contributors during
an election cycle segment to exceed an amount equal to 20 percent of the election cycle
segment expenditure limits for the office sought by the candidate, provided that the 20
percent limit must be rounded to the nearest $100.

new text begin (b) A candidate must not permit the candidate's principal campaign committee to accept
a contribution that is prohibited by section 211B.15.
new text end

Sec. 2.

Minnesota Statutes 2022, section 211B.15, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

new text begin (a) new text end For purposes of this section, new text begin the terms defined in this
subdivision have the meanings given. Unless otherwise provided, the definitions in section
10A.01 also apply to this section.
new text end

new text begin (b) "Chief executive officer" means the highest-ranking officer or decision-making
individual with authority over a corporation's affairs.
new text end

new text begin (c) new text end "Corporation" means:

(1) a corporation organized for profit that does business in this state;

(2) a nonprofit corporation that carries out activities in this state; or

(3) a limited liability company formed under chapter 322C, or under similar laws of
another state, that does business in this state.

new text begin (d) "Foreign-influenced corporation" means a corporation, as defined in paragraph (c),
clause (1) or (3), for which at least one of the following conditions is met:
new text end

new text begin (1) a single foreign investor holds, owns, controls, or otherwise has direct or indirect
beneficial ownership of one percent or more of the total equity, outstanding voting shares,
membership units, or other applicable ownership interests of the corporation;
new text end

new text begin (2) two or more foreign investors in aggregate hold, own, control, or otherwise have
direct or indirect beneficial ownership of five percent or more of the total equity, outstanding
voting shares, membership units, or other applicable ownership interests of the corporation;
or
new text end

new text begin (3) a foreign investor participates directly or indirectly in the corporation's
decision-making process with respect to the corporation's political activities in the United
States.
new text end

new text begin (e) "Foreign investor" means a person or entity that:
new text end

new text begin (1) holds, owns, controls, or otherwise has direct or indirect beneficial ownership of
equity, outstanding voting shares, membership units, or otherwise applicable ownership
interests of a corporation; and
new text end

new text begin (2) is any of the following: (i) a government of a foreign country; (ii) a political party
organized in a foreign country; (iii) a partnership, association, corporation, organization,
or other combination of persons organized under the laws of or having its principal place
of business in a foreign country; (iv) an individual outside of the United States who is not
a citizen or national of the United States and who is not lawfully admitted for permanent
residence in the United States; or (v) a corporation in which a foreign investor, as defined
in this paragraph, holds, owns, controls, or otherwise has directly or indirectly acquired
beneficial ownership of equity or voting shares in an amount that is equal to or greater than
50 percent of the total equity or outstanding voting shares.
new text end

Sec. 3.

Minnesota Statutes 2022, section 211B.15, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Foreign-influenced corporations. new text end

new text begin (a) Notwithstanding subdivisions 3 and
4, a foreign-influenced corporation must not:
new text end

new text begin (1) make an expenditure, or offer or agree to make an expenditure, to promote or defeat
the candidacy of an individual for nomination, election, or appointment to a public office;
new text end

new text begin (2) make contributions or expenditures to promote or defeat a ballot question or to qualify
a question for placement on the ballot;
new text end

new text begin (3) make a contribution to a candidate for nomination, election, or appointment to a
public office or to a candidate's principal campaign committee; or
new text end

new text begin (4) make a contribution to a political committee, political fund, or political party unit.
new text end

new text begin (b) A foreign-influenced corporation must not make a contribution or donation to any
other person with the express or implied condition that the contribution or any part of it be
used for any of the purposes prohibited by this subdivision.
new text end

Sec. 4.

Minnesota Statutes 2022, section 211B.15, is amended by adding a subdivision to
read:

new text begin Subd. 4b. new text end

new text begin Certification of compliance with subdivision 4a. new text end

new text begin A corporation, as defined
in subdivision 1, paragraph (c), clause (1) or (3), that makes a contribution or expenditure
authorized by subdivision 3 or 4 must, within seven business days after the contribution or
expenditure is made, submit a certification to the Campaign Finance and Public Disclosure
Board that it was not a foreign-influenced corporation as of the date the contribution or
expenditure was made. The certification must be signed by the corporation's chief executive
officer after reasonable inquiry, under penalty of perjury. If the activity requiring certification
was a contribution to an independent expenditure committee, the corporation must
additionally provide a copy of the certification to that committee. For purposes of this
certification, the corporation shall ascertain beneficial ownership in a manner consistent
with chapter 302A or, if it is registered on a national securities exchange, as set forth in
Code of Federal Regulations, title 17, sections 240.13d-3 and 240.13d-5. The corporation
shall provide a copy of the statement of certification to any candidate or committee to which
it contributes and, upon request of the recipient, to any other person to which it contributes.
new text end

Sec. 5.

Minnesota Statutes 2022, section 211B.15, subdivision 7b, is amended to read:

Subd. 7b.

Knowing violations.

An individual or a corporation knowingly violates this
section if, at the time of a transaction, the individual or the corporation knew:

(1) that the transaction causing the violation constituted a contribution under chapter
10A, 211A, or 383B; and

(2) that the contributor was a corporation subject to the prohibitions of subdivision 2 new text begin or
4a new text end .

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2023, and applies to contributions, expenditures, and other
applicable activities occurring on or after that date.
new text end