HF 111

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state government; creating a rebuttable 
  1.3             presumption that certain outside activity by executive 
  1.4             branch constitutional officers is a conflict of 
  1.5             interest; clarifying that executive branch 
  1.6             constitutional officers are subject to the code of 
  1.7             ethics; providing for enforcement of the code of 
  1.8             ethics; amending Minnesota Statutes 2000, sections 
  1.9             10.01; and 43A.38, subdivisions 1, 6, and 7. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 10.01, is 
  1.12  amended to read: 
  1.13     10.01 [SPACE FOR CONSTITUTIONAL OFFICES; ADDITIONAL 
  1.14  DUTIES.] 
  1.15     Subdivision 1.  [CAPITOL AREA SPACE; FURTHER OBLIGATIONS.] 
  1.16  The governor, secretary of state, auditor, treasurer, and 
  1.17  attorney general shall keep their offices in rooms provided for 
  1.18  them, respectively, in the area known as the capitol, or as the 
  1.19  capitol complex, or as the capitol area; and, in addition to the 
  1.20  duties heretofore prescribed, shall severally render such other 
  1.21  services and be subject to such further obligations as are 
  1.22  required of or imposed upon them by law.  
  1.23     Subd. 2.  [CONFLICT WITH DUTIES.] (a) The involvement of 
  1.24  the governor, lieutenant governor, secretary of state, auditor, 
  1.25  or attorney general in income-producing activity outside of the 
  1.26  duties of office is likely to affect the officer's independence 
  1.27  of judgment in the exercise of official duties, or to create the 
  2.1   perception that the officer is using the official position to 
  2.2   secure advantages that are different from those available to the 
  2.3   general public.  Therefore, it is presumed to be a conflict of 
  2.4   interest under section 43A.38, for an officer listed in this 
  2.5   subdivision to engage in activity, other than the duties of 
  2.6   office, in which the officer receives income:  (1) from the 
  2.7   conduct of a trade or business; or (2) from providing personal, 
  2.8   professional, or other services as an employee, as an 
  2.9   independent contractor, or through self-employment. 
  2.10     (b) An officer may overcome the presumption in paragraph 
  2.11  (a) by demonstrating to the satisfaction of the chief 
  2.12  administrative law judge, appointed under section 14.48, that 
  2.13  engaging in the activity is not a conflict of interest under 
  2.14  section 43A.38.  
  2.15     Sec. 2.  Minnesota Statutes 2000, section 43A.38, 
  2.16  subdivision 1, is amended to read: 
  2.17     Subdivision 1.  [DEFINITIONS.] For the purpose of this 
  2.18  section the following definitions shall apply: 
  2.19     (a) "Business" means any corporation, partnership, 
  2.20  proprietorship, firm, enterprise, franchise, association, 
  2.21  organization, self-employed individual or any other legal entity 
  2.22  which engages either in nonprofit or profit making activities. 
  2.23     (b) "Confidential information" means any information 
  2.24  obtained under government authority which has not become part of 
  2.25  the body of public information and which, if released 
  2.26  prematurely or in nonsummary form, may provide unfair economic 
  2.27  advantage or adversely affect the competitive position of an 
  2.28  individual or a business. 
  2.29     (c) "Employee" has the meaning given in section 43A.02, 
  2.30  subdivision 21, and includes an executive officer listed in 
  2.31  Minnesota Constitution, article V, section 1. 
  2.32     (d) "Private interest" means any interest, including but 
  2.33  not limited to a financial interest, which pertains to a person 
  2.34  or business whereby the person or business would gain a benefit, 
  2.35  privilege, exemption or advantage from the action of a state 
  2.36  agency or employee that is not available to the general public. 
  3.1      Sec. 3.  Minnesota Statutes 2000, section 43A.38, 
  3.2   subdivision 6, is amended to read: 
  3.3      Subd. 6.  [DETERMINATION OF CONFLICTS OF INTEREST.] When an 
  3.4   employee believes the potential for a conflict of interest 
  3.5   exists, it is the employee's duty to avoid the situation.  A 
  3.6   conflict of interest shall be deemed to exist when a review of 
  3.7   the situation by the employee, the appointing authority or the 
  3.8   commissioner determines any one of the following conditions to 
  3.9   be present: 
  3.10     (a) the use for private gain or advantage of state time, 
  3.11  facilities, equipment or supplies or badge, uniform, prestige or 
  3.12  influence of state office or employment; 
  3.13     (b) receipt or acceptance by the employee of any money or 
  3.14  other thing of value from anyone other than the state for the 
  3.15  performance of an act which the employee would be required or 
  3.16  expected to perform in the regular course or hours of state 
  3.17  employment or as part of the duties as an employee; 
  3.18     (c) employment by a business which is subject to the direct 
  3.19  or indirect control, inspection, review, audit or enforcement by 
  3.20  the employee; 
  3.21     (d) the performance of an act in other than the employee's 
  3.22  official capacity which may later be subject directly or 
  3.23  indirectly to the control, inspection, review, audit or 
  3.24  enforcement by the employee.  
  3.25     The chief administrative law judge, appointed under section 
  3.26  14.48, instead of the commissioner, shall make determinations 
  3.27  concerning potential conflicts of interest for an executive 
  3.28  officer listed in Minnesota Constitution, article V, section 1.  
  3.29  If the chief administrative law judge has a conflict of interest 
  3.30  in a determination under this section, the chief may assign 
  3.31  another administrative law judge to make the determination. 
  3.32     Sec. 4.  Minnesota Statutes 2000, section 43A.38, 
  3.33  subdivision 7, is amended to read: 
  3.34     Subd. 7.  [RESOLUTION OF CONFLICT OF INTEREST.] (a) This 
  3.35  paragraph applies to an employee other than an executive officer 
  3.36  listed in Minnesota Constitution, article V, section 1.  If the 
  4.1   employee, appointing authority or commissioner determine that a 
  4.2   conflict of interest exists, the matter shall be assigned to 
  4.3   another employee who does not have a conflict of interest.  If 
  4.4   it is not possible to assign the matter to an employee who does 
  4.5   not have a conflict of interest, interested persons shall be 
  4.6   notified of the conflict and the employee may proceed with the 
  4.7   assignment. 
  4.8      (b) An executive officer listed in Minnesota Constitution, 
  4.9   article V, section 1, must attempt to avoid or mitigate a 
  4.10  potential conflict of interest to the greatest extent 
  4.11  practicable.  Any person may request the chief administrative 
  4.12  law judge to determine if a conflict of interest exists for an 
  4.13  executive officer listed in Minnesota Constitution, article V, 
  4.14  section 1.  If the chief administrative law judge determines 
  4.15  that a conflict of interest exists, any person may bring an 
  4.16  action in the district court in Ramsey county to enjoin an 
  4.17  executive officer listed in Minnesota Constitution, article V, 
  4.18  section 1, from engaging in activity that the chief 
  4.19  administrative law judge has determined to constitute a conflict 
  4.20  of interest under this section.  
  4.21     Sec. 5.  [EFFECTIVE DATE.] 
  4.22     Section 1 is effective January 1, 2003.  Sections 2 to 4 
  4.23  are effective the day following final enactment.  Section 2 is a 
  4.24  clarification of the law in effect before the effective date of 
  4.25  section 2.