1.1                          A bill for an act 
  1.2             relating to campaign finance and public disclosure; 
  1.3             increasing the public's right to know; requiring 
  1.4             disclosure of economic interests of independent 
  1.5             contractors and consultants; changing certain 
  1.6             definitions; requiring disclosure of the costs of 
  1.7             lobbying; requiring certain reports; amending 
  1.8             Minnesota Statutes 2002, sections 10A.01, subdivisions 
  1.9             5, 21, 33; and 10A.04, subdivisions 4, 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 10A.01, 
  1.12  subdivision 5, is amended to read: 
  1.13     Subd. 5.  [ASSOCIATED BUSINESS.] "Associated business" 
  1.14  means an association from which the individual receives 
  1.15  compensation in excess of $50 $500 in a year, except for actual 
  1.16  and reasonable expenses, in any month as a director, officer, 
  1.17  owner, member, partner, employer or employee, or whose 
  1.18  securities the individual holds worth $2,500 or more at fair 
  1.19  market value.  "Associated business" also means a lobbyist or 
  1.20  principal by whom the individual is compensated in excess of 
  1.21  $500 in a year, except for actual and reasonable expenses, for 
  1.22  providing services to the lobbyist or principal as an 
  1.23  independent contractor or consultant.  If an individual is 
  1.24  compensated by an association for providing services to a 
  1.25  lobbyist or principal as an independent contractor or 
  1.26  consultant, "associated business" includes both the association 
  1.27  that pays the compensation and the lobbyist or principal to whom 
  2.1   the services are provided. 
  2.2      Sec. 2.  Minnesota Statutes 2002, section 10A.01, 
  2.3   subdivision 21, is amended to read: 
  2.4      Subd. 21.  [LOBBYIST.] (a) "Lobbyist" means an individual: 
  2.5      (1) engaged for pay or other consideration, or authorized 
  2.6   to spend money by another individual, association, political 
  2.7   subdivision, or public higher education system, who spends more 
  2.8   than five hours in any month or more than $250, not including 
  2.9   the individual's own travel expenses and membership dues, of 
  2.10  more than $5,000 in any year, for the purpose of attempting to 
  2.11  influence legislative or administrative action, or the official 
  2.12  action of a metropolitan governmental unit, by communicating or 
  2.13  urging others to communicate with public or local officials; or 
  2.14     (2) who spends more than $250, not including the 
  2.15  individual's own traveling expenses and membership dues, in any 
  2.16  year for the purpose of attempting to influence legislative or 
  2.17  administrative action, or the official action of a metropolitan 
  2.18  governmental unit, by communicating or urging others to 
  2.19  communicate with public or local officials. 
  2.20     (b) "Lobbyist" does not include: 
  2.21     (1) a public official; 
  2.22     (2) an employee of the state, including an employee of any 
  2.23  of the public higher education systems; 
  2.24     (3) an elected local official; 
  2.25     (4) a nonelected local official or an employee of a 
  2.26  political subdivision or public higher education system acting 
  2.27  in an official capacity, unless the nonelected official or 
  2.28  employee of a political subdivision or public higher education 
  2.29  system spends more than 50 hours in any month attempting to 
  2.30  influence legislative or administrative action, or the official 
  2.31  action of a metropolitan governmental unit other than the 
  2.32  political subdivision or public higher education system 
  2.33  employing the official or employee, by communicating or urging 
  2.34  others to communicate with public or local officials, including 
  2.35  time spent monitoring legislative or administrative action, or 
  2.36  the official action of a metropolitan governmental unit, and 
  3.1   related research, analysis, and compilation and dissemination of 
  3.2   information relating to legislative or administrative policy in 
  3.3   this state, or to the policies of metropolitan governmental 
  3.4   units; 
  3.5      (5) a party or the party's representative appearing in a 
  3.6   proceeding before a state board, commission, or agency of the 
  3.7   executive branch unless the board, commission, or agency is 
  3.8   taking administrative action; 
  3.9      (6) an individual while engaged in selling goods or 
  3.10  services to be paid for by public funds; 
  3.11     (7) a news medium or its employees or agents while engaged 
  3.12  in the publishing or broadcasting of news items, editorial 
  3.13  comments, or paid advertisements which directly or indirectly 
  3.14  urge official action; 
  3.15     (8) a paid expert witness whose testimony is requested by 
  3.16  the body before which the witness is appearing, but only to the 
  3.17  extent of preparing or delivering testimony; or 
  3.18     (9) a party or the party's representative appearing to 
  3.19  present a claim to the legislature and communicating to 
  3.20  legislators only by the filing of a claim form and supporting 
  3.21  documents and by appearing at public hearings on the claim. 
  3.22     (c) An individual who volunteers personal time to work 
  3.23  without pay or other consideration on a lobbying campaign, and 
  3.24  who does not spend more than the limit in paragraph (a), clause 
  3.25  (2), need not register as a lobbyist. 
  3.26     (d) An individual who provides administrative support to a 
  3.27  lobbyist and whose salary and administrative expenses 
  3.28  attributable to lobbying activities are reported as lobbying 
  3.29  expenses by the lobbyist, but who does not communicate or urge 
  3.30  others to communicate with public or local officials, need not 
  3.31  register as a lobbyist. 
  3.32     Sec. 3.  Minnesota Statutes 2002, section 10A.01, 
  3.33  subdivision 33, is amended to read: 
  3.34     Subd. 33.  [PRINCIPAL.] "Principal" means an individual or, 
  3.35  association, political subdivision, or public higher education 
  3.36  system that:  
  4.1      (1) spends more than $500 in the aggregate in any calendar 
  4.2   year to engage a lobbyist, compensate a lobbyist, or authorize 
  4.3   the expenditure of money by a lobbyist; or 
  4.4      (2) is not included in clause (1) and spends a total of at 
  4.5   least $50,000 in any calendar year on efforts to influence 
  4.6   legislative action, administrative action, or the official 
  4.7   action of metropolitan governmental units, as described in 
  4.8   section 10A.04, subdivision 6.  
  4.9      Sec. 4.  Minnesota Statutes 2002, section 10A.04, 
  4.10  subdivision 4, is amended to read: 
  4.11     Subd. 4.  [CONTENT.] (a) A report under this section must 
  4.12  include information the board requires from the registration 
  4.13  form and the information required by this subdivision for the 
  4.14  reporting period. 
  4.15     (b) A lobbyist must report a general description of the 
  4.16  subject or subjects on which the lobbyist lobbied on behalf of 
  4.17  each principal.  
  4.18     (c) A lobbyist must report the unitemized total amount of 
  4.19  all income from the principal for lobbying activities on behalf 
  4.20  of the principal, rounded to the nearest $10,000.  The total 
  4.21  must include amounts paid to cover the lobbyist's salary and 
  4.22  administrative expenses.  The report must include any payments 
  4.23  to the lobbyist by any other person for lobbying activities on 
  4.24  behalf of the principal. 
  4.25     (d) A lobbyist must report the lobbyist's total 
  4.26  disbursements on lobbying, separately listing lobbying to 
  4.27  influence legislative action, lobbying to influence 
  4.28  administrative action, and lobbying to influence the official 
  4.29  actions of a metropolitan governmental unit, and a breakdown of 
  4.30  disbursements for each of those kinds of lobbying into 
  4.31  categories specified by the board, including but not limited to 
  4.32  the cost of publication and distribution of each publication 
  4.33  used in lobbying; other printing; media, including the cost of 
  4.34  production; postage; travel; fees, including allowances; 
  4.35  entertainment; telephone and telegraph; and other expenses. 
  4.36     (c) (e) A lobbyist must report the amount and nature of 
  5.1   each gift, item, or benefit, excluding contributions to a 
  5.2   candidate, equal in value to $5 or more, and each contribution 
  5.3   to a candidate equal in value to $50 or more, given or paid to 
  5.4   any official, as defined in section 10A.071, subdivision 1, by 
  5.5   the lobbyist or an employer or employee at the direction of the 
  5.6   lobbyist.  The list must include the name and address of each 
  5.7   official to whom the gift, item, or benefit, or contribution was 
  5.8   given or paid and the date it was given or paid.  
  5.9      (d) (f) A lobbyist must report each original source of 
  5.10  money in excess of $500 in any year used for the purpose of 
  5.11  lobbying to influence legislative action, administrative action, 
  5.12  or the official action of a metropolitan governmental unit.  The 
  5.13  list must include the name, address, and employer, or, if 
  5.14  self-employed, the occupation and principal place of business, 
  5.15  of each payer of money in excess of $500. 
  5.16     (e) On the report due April 15, the lobbyist must provide a 
  5.17  general description of the subjects lobbied in the previous 12 
  5.18  months (g) A lobbyist must report the amount and date of each 
  5.19  contribution given by the lobbyist to a party organization 
  5.20  within a house of the legislature. 
  5.21     Sec. 5.  Minnesota Statutes 2002, section 10A.04, 
  5.22  subdivision 6, is amended to read: 
  5.23     Subd. 6.  [PRINCIPAL REPORTS.] (a) A principal must report 
  5.24  to the board as required in this subdivision by March 15 for the 
  5.25  preceding calendar year. 
  5.26     (b) The principal must report the total amount, rounded to 
  5.27  the nearest $20,000, spent by the principal during the preceding 
  5.28  calendar year to influence legislative action, the total amount 
  5.29  spent by the principal during the preceding calendar year to 
  5.30  influence administrative action, and the total amount spent by 
  5.31  the principal during the preceding calendar year to influence 
  5.32  the official action of metropolitan governmental units. 
  5.33     (c) The principal must report under this subdivision a 
  5.34  total amount that includes: 
  5.35     (1) all direct payments by the principal to lobbyists in 
  5.36  this state; 
  6.1      (2) all expenditures for advertising, mailing, research, 
  6.2   analysis, compilation and dissemination of information, and 
  6.3   public relations campaigns related to legislative action, 
  6.4   administrative action, or the official action of metropolitan 
  6.5   governmental units in this state; and 
  6.6      (3) all salaries and administrative expenses attributable 
  6.7   to activities of the principal or a lobbyist engaged by the 
  6.8   principal relating to efforts on behalf of the principal to 
  6.9   influence legislative action, administrative action, or the 
  6.10  official action of metropolitan governmental units in this state.