HF 1803

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/11/2022 11:39am

A bill for an act
relating to ethics in government; making technical changes to provisions
administered by the Campaign Finance and Public Disclosure Board, including
provisions related to certain public officials, statements of economic interest,
contributions, and disclosures; providing exceptions; amending Minnesota Statutes
2020, sections 10A.01, subdivision 35; 10A.09; 10A.20, subdivision 13; 10A.27,
subdivision 13; 10A.275, subdivision 1; 10A.323; repealing Minnesota Statutes
2020, sections 116O.03, subdivision 9; 116O.04, subdivision 3.

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

Section 1.

Minnesota Statutes 2020, section 10A.01, subdivision 35, is amended to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative auditor,
director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
Department;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a state
board or commission that has either the power to adopt, amend, or repeal rules under chapter
14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend, or
repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of Administrative
Hearings or unemployment law judge in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the Department
of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State High
School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management organization
as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30;

(25) member or chief executive of the Minnesota Sports Facilities Authority established
in section 473J.07;

(26) district court judge, appeals court judge, or supreme court justice;

(27) county commissioner;

(28) member of the Greater Minnesota Regional Parks and Trails Commission; deleted text begin or
deleted text end

(29) member of the Destination Medical Center Corporation established in section 469.41 new text begin
new text end deleted text begin . deleted text end new text begin ; or
new text end

new text begin (30) chancellor or member of the Board of Trustees of the Minnesota State Colleges
and Universities.
new text end

Sec. 2.

Minnesota Statutes 2020, section 10A.09, subdivision 1, is amended to read:

Subdivision 1.

Time for filing.

An individual must file a statement of economic interest
deleted text begin with the board deleted text end :

(1) within 60 days of accepting employment as a public official or a local official in a
metropolitan governmental unit;

(2) within 60 days of assuming office as a district court judge, appeals court judge,
supreme court justice, or county commissioner;

(3) within 14 days after filing an affidavit of candidacy or petition to appear on the ballot
for an elective state constitutional or legislative office or an elective local office in a
metropolitan governmental unit other than county commissioner;

(4) in the case of a public official requiring the advice and consent of the senate, within
14 days after undertaking the duties of office; or

(5) in the case of members of the Minnesota Racing Commission, the director of the
Minnesota Racing Commission, chief of security, medical officer, inspector of pari-mutuels,
and stewards employed or approved by the commission or persons who fulfill those duties
under contract, within 60 days of accepting or assuming duties.

Sec. 3.

Minnesota Statutes 2020, section 10A.09, subdivision 2, is amended to read:

Subd. 2.

Notice to board.

The secretary of state or the appropriate county auditor, upon
receiving an affidavit of candidacy or petition to appear on the ballot from an individual
required by this section to file a statement of economic interest, and any official who
nominates or employs a public deleted text begin or local deleted text end official required by this section to file a statement
of economic interest, must notify the board of the name of the individual required to file a
statement and the date of the affidavit, petition, or nomination.

Sec. 4.

Minnesota Statutes 2020, section 10A.09, subdivision 5, is amended to read:

Subd. 5.

Form; general requirements.

(a) A statement of economic interest required
by this section must be on a form prescribed by the board. The individual filing must provide
the following information:

(1) name, address, occupation, and principal place of business;

(2) the name of each associated business and the nature of that association;

(3) a listing of all real property within the state, excluding homestead property, in which
the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or
seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;

(4) a listing of all real property within the state in which a partnership of which the
individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
has a fair market value of more than $50,000. A listing under this clause or clause (3) must
indicate the street address and the municipality or the section, township, range and
approximate acreage, whichever applies, and the county in which the property is located;

(5) a listing of any investments, ownership, or interests in property connected with
pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
the individual directly or indirectly holds a partial or full interest or an immediate family
member holds a partial or full interest;

(6) a listing of the principal business or professional activity category of each business
from which the individual receives more than $250 in any month new text begin during the reporting period new text end
as an employee, if the individual has an ownership interest of 25 percent or more in the
business;

(7) a listing of each principal business or professional activity category from which the
individual received compensation of more than $2,500 in the past 12 months as an
independent contractor; and

(8) a listing of the full name of each security with a value of more than $10,000 owned
in part or in full by the individual, at any time during the reporting period.

(b) The business or professional categories for purposes of paragraph (a), clauses (6)
and (7), must be the general topic headings used by the federal Internal Revenue Service
for purposes of reporting self-employment income on Schedule C. This paragraph does not
require an individual to report any specific code number from that schedule. Any additional
principal business or professional activity category may only be adopted if the category is
enacted by law.

deleted text begin (c) For the purpose of an original statement of economic interest, "compensation in any
month" includes only compensation received in the calendar month immediately preceding
the date of appointment as a public official or filing as a candidate.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end For the purpose of calculating the amount of compensation received from any
single source in a single month, the amount shall include the total amount received from
the source during the month, whether or not the amount covers compensation for more than
one month.

deleted text begin (e) deleted text end new text begin (d) new text end For the purpose of determining the value of an individual's interest in real property,
the value of the property is the market value shown on the property tax statement.

deleted text begin (f) For the purpose of an original statement of economic interest, the individual shall
disclose only those real properties owned on the date of appointment as a public official or
filing as a candidate.
deleted text end

deleted text begin (g) deleted text end new text begin (e) new text end For the purpose of this section, "date of appointment" means the effective date
of appointment to a position.

deleted text begin (h) deleted text end new text begin (f) new text end For the purpose of this section, "accepting employment as a public official" means
the effective date of the appointment to the position, as stated in the appointing authority's
notice to the board.

Sec. 5.

Minnesota Statutes 2020, section 10A.09, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Original statement; reporting period. new text end

new text begin (a) An original statement of economic
interest required under subdivision 1, clause (1), must cover the calendar month before the
month in which the individual accepted employment as a public official or a local official
in a metropolitan governmental unit.
new text end

new text begin (b) An original statement of economic interest required under subdivision 1, clauses (2),
(4), and (5), must cover the calendar month before the month in which the individual assumed
or undertook the duties of office.
new text end

new text begin (c) An original statement of economic interest required under subdivision 1, clause (3),
must cover the calendar month before the month in which the candidate filed the affidavit
of candidacy.
new text end

Sec. 6.

Minnesota Statutes 2020, section 10A.09, subdivision 6, is amended to read:

Subd. 6.

Annual statement.

(a) Each individual who is required to file a statement of
economic interest must also file an annual statement by the last Monday in January of each
year that the individual remains in office. The annual statement must cover the period
through December 31 of the year prior to the year when the statement is due. The annual
statement must include the amount of each honorarium in excess of deleted text begin $50 deleted text end new text begin $250 new text end received since
the previous statement and the name and address of the source of the honorarium. The board
must maintain each annual statement of economic interest submitted by an officeholder in
the same file with the statement submitted as a candidate.

deleted text begin (b) For the purpose of annual statements of economic interest to be filed, "compensation
in any month" includes compensation and honoraria received in any month between the
end of the period covered in the preceding statement of economic interest and the end of
the current period.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end An individual must file the annual statement of economic interest required by
this subdivision to cover the period for which the individual served as a public official even
though at the time the statement was filed, the individual is no longer holding that office as
a public official.

deleted text begin (d) For the purpose of an annual statement of economic interest, the individual shall
disclose any real property owned at any time between the end of the period covered by the
preceding statement of economic interest and through the last day of the month preceding
the current filing or the last day of employment, if the individual is no longer a public
official.
deleted text end

Sec. 7.

Minnesota Statutes 2020, section 10A.20, subdivision 13, is amended to read:

Subd. 13.

Third-party reimbursement.

An individual or association filing a report
disclosing an expenditure or noncampaign disbursement that must be reported and itemized
under subdivision 3, paragraph deleted text begin (g) deleted text end new text begin (h) new text end or deleted text begin (l) deleted text end new text begin (m) new text end , that is a reimbursement to a third party
must report the purpose of each expenditure or disbursement for which the third party is
being reimbursed. In the alternative, the reporting individual or association may report
individually each of the underlying expenditures being reimbursed. An expenditure or
disbursement is a reimbursement to a third party if it is for goods or services that were not
directly provided by the individual or association to whom the expenditure or disbursement
is made. Third-party reimbursements include payments to credit card companies and
reimbursement of individuals for expenses they have incurred.

Sec. 8.

Minnesota Statutes 2020, section 10A.27, subdivision 13, is amended to read:

Subd. 13.

Unregistered association limit; statement; penalty.

(a) The treasurer of a
political committee, political fund, principal campaign committee, or party unit must not
accept a contribution of more than $200 from an association not registered under this chapter
unless the contribution is accompanied by a deleted text begin written deleted text end statement that meets the disclosure and
reporting period requirements imposed by section 10A.20. new text begin The statement may be a written
statement or a government website where the disclosure report for the unregistered association
may be viewed. new text end This statement must be certified as true and correct by an officer of the
contributing association. The committee, fund, or party unit that accepts the contribution
must include a copy of the new text begin written new text end statement new text begin or website new text end with the report that discloses the
contribution to the board.

(b) An unregistered association may provide the deleted text begin written deleted text end statement required by this
subdivision to no more than three committees, funds, or party units in a calendar year. Each
statement must cover at least the 30 days immediately preceding and including the date on
which the contribution was made. An unregistered association or an officer of it is subject
to a civil penalty imposed by the board of up to $1,000, if the association or its officer:

(1) fails to provide a deleted text begin written deleted text end statement as required by this subdivision; or

(2) fails to register after giving the deleted text begin written deleted text end statement required by this subdivision to more
than three committees, funds, or party units in a calendar year.

(c) The treasurer of a political committee, political fund, principal campaign committee,
or party unit who accepts a contribution in excess of $200 from an unregistered association
without the required deleted text begin written deleted text end disclosure statement is subject to a civil penalty up to four
times the amount in excess of $200.

(d) This subdivision does not apply:

(1) when a national political party contributes money to its state committee; deleted text begin or
deleted text end

new text begin (2) when a federal committee of a major or minor political party registered with the
board gives an in-kind contribution to the federal committee's state central committee or a
party organization within a house of the state legislature; or
new text end

deleted text begin (2) deleted text end new text begin (3) new text end to purchases by candidates for federal office of tickets to events or space rental
at events held by party units in this state (i) if the geographical area represented by the party
unit includes any part of the geographical area of the office that the federal candidate is
seeking and (ii) the purchase price is not more than that paid by other attendees or renters
of similar spaces.

Sec. 9.

Minnesota Statutes 2020, section 10A.275, subdivision 1, is amended to read:

Subdivision 1.

Exceptions.

Notwithstanding other provisions of this chapter, the
following expenditures by a party unit, or two or more party units acting together, with at
least one party unit being either: the state committee or the party organization within a
congressional district, county, or legislative district, are not considered contributions to or
expenditures on behalf of a candidate for the purposes of section 10A.25 or 10A.27 and
must not be allocated to candidates under section 10A.20, subdivision 3, paragraph deleted text begin (g) deleted text end new text begin (h) new text end :

(1) expenditures on behalf of candidates of that party generally without referring to any
of them specifically in a published, posted, or broadcast advertisement;

(2) expenditures for the preparation, display, mailing, or other distribution of an official
party sample ballot listing the names of three or more individuals whose names are to appear
on the ballot;

(3) expenditures for a telephone deleted text begin conversation including deleted text end new text begin call, voice mail, text message,
multimedia message, internet chat message, or e-mail when the communication includes new text end
the names of three or more individuals whose names are to appear on the ballot;

(4) expenditures for a political party fund-raising effort on behalf of three or more
candidates; or

(5) expenditures for party committee staff services that benefit three or more candidates.

Sec. 10.

Minnesota Statutes 2020, section 10A.323, is amended to read:

10A.323 AFFIDAVIT OF CONTRIBUTIONS.

(a) In addition to the requirements of section 10A.322, to be eligible to receive a public
subsidy under section 10A.31 a candidate or the candidate's treasurer must:

(1) between January 1 of the previous year and the cutoff date for transactions included
in the report of receipts and expenditures due before the primary election, accumulate
contributions from individuals eligible to vote in this state in at least the amount indicated
for the office sought, counting only the first $50 received from each contributor, excluding
in-kind contributions:

(i) candidates for governor and lieutenant governor running together, $35,000;

(ii) candidates for attorney general, $15,000;

(iii) candidates for secretary of state and state auditor, separately, $6,000;

(iv) candidates for the senate, $3,000; and

(v) candidates for the house of representatives, $1,500;

(2) file an affidavit with the board stating that the principal campaign committee has
complied with this paragraph. The affidavit must state the total amount of contributions that
have been received from individuals eligible to vote in this state, excluding:

(i) the portion of any contribution in excess of $50;

(ii) any in-kind contribution; and

(iii) any contribution for which the name and address of the contributor is not known
and recorded; and

(3) submit the affidavit required by this section to the board in writing by the deadline
for reporting of receipts and expenditures before a primary under section 10A.20, subdivision
deleted text begin 4 deleted text end new text begin 2 new text end .

(b) A candidate for a vacancy to be filled at a special election for which the filing period
does not coincide with the filing period for the general election must accumulate the
contributions specified in paragraph (a) and must submit the affidavit required by this section
to the board within five days after the close of the filing period for the special election for
which the candidate filed.

(c) Notwithstanding paragraphs (a) and (b), a candidate for a vacancy to be filled at a
special election called under section 204B.13, subdivision 2, paragraph (c), must accumulate
the contributions specified in paragraph (a) and must submit the affidavit required by this
section to the board within 12 calendar days after the general election.

(d) A candidate or the candidate's treasurer must be able to electronically file the affidavit
required under this section in the same manner as other reports required by this chapter.
The board must not require the candidate or candidate's treasurer to notarize the affidavit
of contribution.

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 116O.03, subdivision 9; and 116O.04, subdivision 3, new text end new text begin
are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-01684

116O.03 CORPORATION; BOARD OF DIRECTORS; POWERS.

No active language found for: 116O.03.9

116O.04 CORPORATE PERSONNEL.

No active language found for: 116O.04.3