SF 2386

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 06/18/2025 08:46 a.m.

A bill for an act
relating to campaign finance; providing funds for transition expenses for secretary
of state-elect, state auditor-elect, and attorney general-elect; amending the definition
of noncampaign disbursement; prohibiting making expenditures for inaugural
event expenses or transition expenses except through the candidate's principal
campaign committee or specified laws; authorizing rulemaking; amending
Minnesota Statutes 2024, section 10A.01, subdivision 26; proposing coding for
new law in Minnesota Statutes, chapters 5; 6; 8; 10A.

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

Section 1.

new text begin [5.51] EXPENSES OF SECRETARY OF STATE-ELECT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined have the
meanings given them.
new text end

new text begin (b) "Secretary of state-elect" means the person who is not currently secretary of state
and is the apparent successful candidate for the office of secretary of state following a
general election.
new text end

new text begin (c) "Commissioner" means the commissioner of the Department of Management and
Budget.
new text end

new text begin Subd. 2. new text end

new text begin Transition expenses. new text end

new text begin In the fiscal year of an election for secretary of state and
subject to availability of funds, the commissioner shall transfer up to $50,000 from the
general contingent account in the general fund to the Department of Management and
Budget. This transfer is subject to the review and advice of the Legislative Advisory
Commission pursuant to section 3.30. In consultation with the secretary of state-elect, the
commissioner shall use the transferred funds to pay expenses of the secretary of state-elect
associated with preparing for the assumption of official duties as secretary of state. The
commissioner may use the transferred funds for expenses necessary and prudent for
establishment of a transition office prior to the election and for dissolution of the office if
the incumbent secretary of state is reelected or after the inauguration of a new secretary of
state. Expenses of the secretary of state-elect may include suitable office space and
equipment, communications and technology support, consulting services, compensation
and travel costs, and other reasonable expenses. Compensation rates for temporary employees
hired to support the secretary of state-elect and rates paid for consulting services for the
secretary of state-elect shall be determined by the secretary of state-elect.
new text end

new text begin Subd. 3. new text end

new text begin Unused funds. new text end

new text begin No new obligations shall be incurred for expenses of the secretary
of state-elect after the date of the inauguration. By March 31 of the year of the inauguration,
the commissioner shall return to the general contingent account any funds transferred under
this section that the commissioner determines are not needed to pay expenses of the secretary
of state-elect.
new text end

Sec. 2.

new text begin [6.93] EXPENSES OF STATE AUDITOR-ELECT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined have the
meanings given them.
new text end

new text begin (b) "State auditor-elect" means the person who is not currently state auditor and is the
apparent successful candidate for the office of state auditor following a general election.
new text end

new text begin (c) "Commissioner" means the commissioner of the Department of Management and
Budget.
new text end

new text begin Subd. 2. new text end

new text begin Transition expenses. new text end

new text begin In the fiscal year of an election for state auditor and
subject to availability of funds, the commissioner shall transfer up to $50,000 from the
general contingent account in the general fund to the Department of Management and
Budget. This transfer is subject to the review and advice of the Legislative Advisory
Commission pursuant to section 3.30. In consultation with the state auditor-elect, the
commissioner shall use the transferred funds to pay expenses of the state auditor-elect
associated with preparing for the assumption of official duties as state auditor. The
commissioner may use the transferred funds for expenses necessary and prudent for
establishment of a transition office prior to the election and for dissolution of the office if
the incumbent state auditor is reelected or after the inauguration of a new state auditor.
Expenses of the state auditor-elect may include suitable office space and equipment,
communications and technology support, consulting services, compensation and travel
costs, and other reasonable expenses. Compensation rates for temporary employees hired
to support the state auditor-elect and rates paid for consulting services for the state
auditor-elect shall be determined by the state auditor-elect.
new text end

new text begin Subd. 3. new text end

new text begin Unused funds. new text end

new text begin No new obligations shall be incurred for expenses of the state
auditor-elect after the date of the inauguration. By March 31 of the year of the inauguration,
the commissioner shall return to the general contingent account any funds transferred under
this section that the commissioner determines are not needed to pay expenses of the state
auditor-elect.
new text end

Sec. 3.

new text begin [8.40] EXPENSES OF ATTORNEY GENERAL-ELECT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined have the
meanings given them.
new text end

new text begin (b) "Attorney general-elect" means the person who is not currently attorney general and
is the apparent successful candidate for the office of attorney general following a general
election.
new text end

new text begin (c) "Commissioner" means the commissioner of the Department of Management and
Budget.
new text end

new text begin Subd. 2. new text end

new text begin Transition expenses. new text end

new text begin In the fiscal year of an election for attorney general and
subject to availability of funds, the commissioner shall transfer up to $75,000 from the
general contingent account in the general fund to the Department of Management and
Budget. This transfer is subject to the review and advice of the Legislative Advisory
Commission pursuant to section 3.30. In consultation with the attorney general-elect, the
commissioner shall use the transferred funds to pay expenses of the attorney general-elect
associated with preparing for the assumption of official duties as attorney general. The
commissioner may use the transferred funds for expenses necessary and prudent for
establishment of a transition office prior to the election and for dissolution of the office if
the incumbent attorney general is reelected or after the inauguration of a new attorney
general. Expenses of the attorney general-elect may include suitable office space and
equipment, communications and technology support, consulting services, compensation
and travel costs, and other reasonable expenses. Compensation rates for temporary employees
hired to support the attorney general-elect and rates paid for consulting services for the
attorney general-elect shall be determined by the attorney general-elect.
new text end

new text begin Subd. 3. new text end

new text begin Unused funds. new text end

new text begin No new obligations shall be incurred for expenses of the attorney
general-elect after the date of the inauguration. By March 31 of the year of the inauguration,
the commissioner shall return to the general contingent account any funds transferred under
this section that the commissioner determines are not needed to pay expenses of the attorney
general-elect.
new text end

Sec. 4.

Minnesota Statutes 2024, section 10A.01, subdivision 26, is amended to read:

Subd. 26.

Noncampaign disbursement.

(a) "Noncampaign disbursement" means a
purchase or payment of money or anything of value made, or an advance of credit incurred,
or a donation in kind received, by a principal campaign committee for any of the following
purposes:

(1) payment for accounting and legal services related to operating the candidate's
campaign committee, serving in office, or security for the candidate or the candidate's
immediate family, including but not limited to seeking and obtaining a harassment restraining
order;

(2) return of a contribution to the source;

(3) repayment of a loan made to the principal campaign committee by that committee;

(4) return of a public subsidy;

(5) payment for food, beverages, and necessary utensils and supplies, entertainment,
and facility rental for a fundraising event;

(6) services for a constituent by a member of the legislature or a constitutional officer
in the executive branch as provided in section 10A.173, subdivision 1;

(7) payment for food and beverages consumed by a candidate or volunteers while they
are engaged in campaign activities;

(8) payment for food or a beverage consumed while attending a reception or meeting
directly related to legislative duties;

(9) payment of expenses incurred by elected or appointed leaders of a legislative caucus
in carrying out their leadership responsibilities;

(10) payment by a principal campaign committee of the candidate's expenses for serving
in public office, other than for personal uses;

(11) costs of child care for the candidate's children when campaigning;

(12) fees paid to attend a campaign school;

(13) costs of a postelection party during the election year when a candidate's name will
no longer appear on a ballot or the general election is concluded, whichever occurs first;

(14) interest on loans paid by a principal campaign committee on outstanding loans;

(15) filing fees;

(16) post-general election holiday or seasonal cards, thank-you notes, or advertisements
in the news media mailed or published prior to the end of the election cycle;

(17) the cost of campaign material purchased to replace defective campaign material, if
the defective material is destroyed without being used;

(18) contributions to a party unit;

(19) payments for funeral gifts or memorials;

(20) the cost of a magnet less than six inches in diameter containing legislator contact
information and distributed to constituents;

(21) costs associated with a candidate attending a political party state or national
convention in this state;

(22) other purchases or payments specified in board rules or advisory opinions as being
for any purpose other than to influence the nomination or election of a candidate or to
promote or defeat a ballot question;

(23) costs paid to a third party for processing contributions made by a credit card, debit
card, or electronic check;

(24) costs paid by a candidate's principal campaign committee to support the candidate's
participation in a recount of ballots affecting the candidate's election;

(25) a contribution to a fund established to support a candidate's participation in a recount
of ballots affecting that candidate's election;

(26) costs paid by a candidate's principal campaign committee for a single reception
given in honor of the candidate's retirement from public office after the filing period for
affidavits of candidacy for that office has closed;

(27) a donation from a terminating principal campaign committee to the state general
fund;

(28) a donation from a terminating principal campaign committee to a county obligated
to incur special election expenses due to that candidate's resignation from state office;

(29) during a period starting January 1 in the year following a general election and ending
on December 31 of the year of general election, total payments of up to $3,000 for
detection-related security monitoring expenses for a candidate, including home security
hardware, maintenance of home security monitoring hardware, identity theft monitoring
services, and credit monitoring services; deleted text begin and
deleted text end

(30) costs paid to repair or replace campaign property that was: (i) lost or stolen, or (ii)
damaged or defaced to such a degree that the property no longer serves its intended purpose.
For purposes of this clause, campaign property includes but is not limited to campaign lawn
signs. The candidate must document the need for these costs in writing or with photographs new text begin ;
and
new text end

new text begin (31) transition expenses and inaugural event expenses as defined in section 10A.174 new text end .

(b) The board must determine whether an activity involves a noncampaign disbursement
within the meaning of this subdivision.

(c) A noncampaign disbursement is considered to be made in the year in which the
candidate made the purchase of goods or services or incurred an obligation to pay for goods
or services.

Sec. 5.

new text begin [10A.174] INAUGURAL EVENT AND TRANSITION EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Inaugural event expenses" means expenses incurred for any event related to the
individual's inauguration held between the general election of a person elected to a statewide
office and January 31 of the year in which the officeholder takes office. In the event that a
person fills a vacancy in a constitutional office, "inaugural event expenses" means expenses
incurred for any event related to the individual's inauguration between the time that it was
confirmed that the individual would assume the constitutional office and the date four weeks
after the individual is sworn into office.
new text end

new text begin (c) "Transition expenses" means expenses incurred in preparing for the assumption of
official duties as governor, lieutenant governor, secretary of state, state auditor, or attorney
general. Expenses include but are not limited to establishment of a transition office, the
dissolution of the office, office space and equipment, communications and technology
support, consulting services, compensation and travel costs, and other reasonable expenses.
Transition expenses do not include expenses that are incurred after the officeholder takes
office.
new text end

new text begin Subd. 2. new text end

new text begin Inaugural event and transition expenses; contributions. new text end

new text begin A candidate or a
candidate's principal campaign committee must not solicit or accept any contributions for
or make any expenditure for inaugural event expenses or transition expenses except through
the candidate's principal campaign committee or as provided in section 4.51, 5.51, 6.93, or
8.40.
new text end

Sec. 6. new text begin RULEMAKING.
new text end

new text begin The Campaign Finance and Public Disclosure Board must amend Minnesota Rules, part
4503.0900, to conform to the requirements of this bill regarding transition expenses. The
board may use the good cause exemption under Minnesota Statutes, section 14.388, for
purposes of this section.
new text end