HF 394

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  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; requiring conduit funds 
  1.6             to register with the board of campaign finance and 
  1.7             public disclosure, to have a treasurer, and to not 
  1.8             commingle funds; requiring full disclosure of the 
  1.9             total costs of lobbying; requiring reports; amending 
  1.10            Minnesota Statutes 1998, sections 10A.01, subdivisions 
  1.11            4, 11, 28, and by adding a subdivision; 10A.04, 
  1.12            subdivisions 4, 5, and 6; 10A.14, subdivisions 1 and 
  1.13            2; 10A.20, subdivisions 1, 2, 3, and by adding a 
  1.14            subdivision; and 211B.15, subdivision 16; proposing 
  1.15            coding for new law in Minnesota Statutes, chapter 10A; 
  1.16            repealing Minnesota Statutes 1998, section 10A.04, 
  1.17            subdivision 4a. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1998, section 10A.01, 
  1.20  subdivision 4, is amended to read: 
  1.21     Subd. 4.  [ASSOCIATED BUSINESS.] "Associated business" 
  1.22  means any association in connection with which the individual is 
  1.23  compensated in excess of $50 except for actual and reasonable 
  1.24  expenses in any month as a director, officer, owner, member, 
  1.25  partner, employer or, employee, independent contractor, or 
  1.26  consultant, or is a holder of securities worth $2,500 or more at 
  1.27  fair market value.  If an individual is employed by an 
  1.28  association to provide services to other individuals or 
  1.29  associations as an independent contractor or consultant, 
  1.30  "associated business" includes both the association that is the 
  1.31  employer and the individuals or associations to whom the 
  2.1   services are provided. 
  2.2      Sec. 2.  Minnesota Statutes 1998, section 10A.01, 
  2.3   subdivision 11, is amended to read: 
  2.4      Subd. 11.  [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, in any 
  2.10  year, for the purpose of attempting to influence legislative or 
  2.11  administrative action, or the official action of a metropolitan 
  2.12  governmental unit, by communicating or urging others to 
  2.13  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; 
  3.18     (9) a stockholder of a family farm corporation as defined 
  3.19  in section 500.24, subdivision 2, who does not spend over $250, 
  3.20  excluding the stockholder's own travel expenses, in any year in 
  3.21  communicating with public officials; or 
  3.22     (10) a party or the party's representative appearing to 
  3.23  present a claim to the legislature and communicating to 
  3.24  legislators only by the filing of a claim form and supporting 
  3.25  documents and by appearing at public hearings on the claim. 
  3.26     Sec. 3.  Minnesota Statutes 1998, section 10A.01, 
  3.27  subdivision 28, is amended to read: 
  3.28     Subd. 28.  [PRINCIPAL.] "Principal" means an individual or, 
  3.29  association, political subdivision, or public higher education 
  3.30  system that:  
  3.31     (1) spends more than $500 in the aggregate in any calendar 
  3.32  year to engage a lobbyist, compensate a lobbyist, or authorize 
  3.33  the expenditure of money by a lobbyist; or 
  3.34     (2) is not included in clause (1) and spends a total of at 
  3.35  least $50,000 in any calendar year on efforts to influence 
  3.36  legislative action, administrative action, or the official 
  4.1   action of metropolitan governmental units, as described in 
  4.2   section 10A.04, subdivision 6.  
  4.3      Sec. 4.  Minnesota Statutes 1998, section 10A.01, is 
  4.4   amended by adding a subdivision to read: 
  4.5      Subd. 30.  [CONDUIT FUND.] "Conduit fund" means money, a 
  4.6   negotiable instrument, or a donation in kind collected by an 
  4.7   association from its employees and contributed to a candidate or 
  4.8   political committee only as directed by the employee from whom 
  4.9   the money was collected.  
  4.10     Sec. 5.  [10A.125] [CONDUIT FUNDS.] 
  4.11     An association that has a conduit fund shall elect or 
  4.12  appoint a treasurer of the conduit fund.  A conduit fund may not 
  4.13  accept a contribution for transfer or make a transfer while the 
  4.14  office of treasurer is vacant.  The contents of a conduit fund 
  4.15  may not be commingled with any other funds.  A person who 
  4.16  knowingly violates this section is guilty of a misdemeanor. 
  4.17     Sec. 6.  Minnesota Statutes 1998, section 10A.04, 
  4.18  subdivision 4, is amended to read: 
  4.19     Subd. 4.  [INFORMATION REQUIRED.] (a) The report shall 
  4.20  include such information as the board may require from the 
  4.21  registration form and the information required by this 
  4.22  subdivision for the reporting period. 
  4.23     (b) The report must contain: 
  4.24     (1) a list of the issues upon which the lobbyist lobbied on 
  4.25  behalf of each principal; and 
  4.26     (2) a list of employees of the lobbyist who worked for the 
  4.27  lobbyist as support personnel on behalf of each principal. 
  4.28     (c) Each lobbyist shall report the total amount of all 
  4.29  income from the principal for lobbying activities on behalf of 
  4.30  the principal.  The total must include amounts paid to cover the 
  4.31  lobbyist's salary and administrative expenses.  The report must 
  4.32  include any payments to the lobbyist by any other person for 
  4.33  lobbying activities on behalf of the principal. 
  4.34     (d) Each lobbyist shall report the lobbyist's total 
  4.35  disbursements on lobbying, separately listing lobbying to 
  4.36  influence legislative action, lobbying to influence 
  5.1   administrative action, and lobbying to influence the official 
  5.2   actions of a metropolitan governmental unit, and a breakdown of 
  5.3   disbursements for each of those kinds of lobbying into 
  5.4   categories specified by the board, including but not limited to 
  5.5   the cost of publication and distribution of each publication 
  5.6   used in lobbying; other printing; media, including the cost of 
  5.7   production; postage; travel; fees, including allowances; 
  5.8   entertainment; telephone and telegraph; and other expenses. 
  5.9      (c) (e) Each lobbyist shall report the amount and nature of 
  5.10  each honorarium, gift, loan, item or, benefit, excluding 
  5.11  contributions or contribution to a candidate, equal in value to 
  5.12  $5 or more, given or paid to any public or local official, as 
  5.13  defined in section 10A.071, subdivision 1, by the lobbyist or 
  5.14  any employer or any employee at the direction of the lobbyist.  
  5.15  The list shall include the name and address of each public or 
  5.16  local official to whom the honorarium, gift, loan, item or, 
  5.17  benefit, or contribution was given or paid and the date it was 
  5.18  given or paid.  A lobbyist need report only the aggregate amount 
  5.19  and nature of food or beverages given or made available to all 
  5.20  members of the legislature or a house of the legislature or to 
  5.21  all members of a local legislative body, along with the name of 
  5.22  the legislative body and the date it was given or made available.
  5.23     (d) (f) Each lobbyist shall report each original source of 
  5.24  funds in excess of $500 in any year used for the purpose of 
  5.25  lobbying to influence legislative action, each such source of 
  5.26  funds used to influence administrative action, and each such 
  5.27  source of funds used to influence the official action of 
  5.28  metropolitan governmental units.  The list shall include the 
  5.29  name, address and employer, or, if self-employed, the occupation 
  5.30  and principal place of business, of each payer of funds in 
  5.31  excess of $500. 
  5.32     (g) Each lobbyist shall report the amount and date of each 
  5.33  contribution given by the lobbyist to a party organization 
  5.34  within a house of the legislature. 
  5.35     Sec. 7.  Minnesota Statutes 1998, section 10A.04, 
  5.36  subdivision 5, is amended to read: 
  6.1      Subd. 5.  [LATE FILING.] The board shall notify by 
  6.2   certified mail or personal service any lobbyist or principal who 
  6.3   fails after seven days after a filing date imposed by this 
  6.4   section to file a report or statement required by this section.  
  6.5   If a lobbyist or principal fails to file a report within seven 
  6.6   days after receiving this notice, the board may impose a late 
  6.7   filing fee of $5 per day, not to exceed $100, commencing with 
  6.8   the eighth day after receiving notice.  The board shall further 
  6.9   notify by certified mail or personal service any lobbyist or 
  6.10  principal who fails to file a report within 21 days after 
  6.11  receiving a first notice that the lobbyist or principal may be 
  6.12  subject to a criminal penalty for failure to file the report.  A 
  6.13  lobbyist or principal who knowingly fails to file such a 
  6.14  report or statement within seven days after receiving a second 
  6.15  notice from the board is guilty of a misdemeanor. 
  6.16     Sec. 8.  Minnesota Statutes 1998, section 10A.04, 
  6.17  subdivision 6, is amended to read: 
  6.18     Subd. 6.  [LOBBYIST AND PRINCIPAL REPORTS.] (a) Each A 
  6.19  principal shall report to the board as required in this 
  6.20  subdivision by March 15 for the preceding calendar year. 
  6.21     (b) Each The principal shall report which of the following 
  6.22  categories includes the total amount, rounded to the nearest 
  6.23  dollar, spent by the principal during the preceding calendar 
  6.24  year to influence legislative action, the total amount spent by 
  6.25  the principal during the preceding calendar year to influence 
  6.26  administrative action, and the total amount spent by the 
  6.27  principal during the preceding calendar year to influence the 
  6.28  official action of metropolitan governmental units:.  
  6.29     (1) $501 to $50,000; 
  6.30     (2) $50,001 to $150,000; or 
  6.31     (3) $150,001 to $250,000. 
  6.32     (c) Beyond $250,000, each additional $250,000 constitutes 
  6.33  an additional category, and each principal shall report which of 
  6.34  the categories includes the total amount spent by the principal 
  6.35  for the purposes provided in this subdivision. 
  6.36     (d) The principal shall report under this subdivision a 
  7.1   total amount that includes: 
  7.2      (1) all direct payments by the principal to lobbyists in 
  7.3   Minnesota; 
  7.4      (2) all expenditures for advertising, mailing, research, 
  7.5   analysis, compilation and dissemination of information, and 
  7.6   public relations campaigns related to legislative action, 
  7.7   administrative action, or the official action of metropolitan 
  7.8   governmental units in Minnesota; and 
  7.9      (3) all salaries and administrative expenses attributable 
  7.10  to activities of the principal or a lobbyist engaged by the 
  7.11  principal relating to efforts on behalf of the principal to 
  7.12  influence legislative action, administrative action, or the 
  7.13  official action of metropolitan governmental units in Minnesota. 
  7.14     Sec. 9.  Minnesota Statutes 1998, section 10A.14, 
  7.15  subdivision 1, is amended to read: 
  7.16     Subdivision 1.  [REGISTRATION BY TREASURER.] The treasurer 
  7.17  of a political committee or, political fund, or conduit fund 
  7.18  shall register with the board by filing a statement of 
  7.19  organization no later than 14 days after the date upon which the 
  7.20  committee or fund has made a contribution, received 
  7.21  contributions or made expenditures in excess of $100.  
  7.22     Sec. 10.  Minnesota Statutes 1998, section 10A.14, 
  7.23  subdivision 2, is amended to read: 
  7.24     Subd. 2.  [CONTENTS.] The statement of organization shall 
  7.25  include: 
  7.26     (a) the name and address of the political committee or, 
  7.27  political fund, or conduit fund; 
  7.28     (b) the name and address of any supporting association of a 
  7.29  political fund or conduit fund; 
  7.30     (c) the name and address of the chair, the treasurer, and 
  7.31  any deputy treasurers; 
  7.32     (d) a listing of all depositories or safety deposit boxes 
  7.33  used; 
  7.34     (e) a statement as to whether the committee is a principal 
  7.35  campaign committee as authorized by section 10A.19, subdivision 
  7.36  1; and 
  8.1      (f) for political parties only, a list of categories of 
  8.2   substate units as defined in section 10A.27, subdivision 4. 
  8.3      Sec. 11.  Minnesota Statutes 1998, section 10A.20, 
  8.4   subdivision 1, is amended to read: 
  8.5      Subdivision 1.  [FIRST FILING; DURATION.] The treasurer of 
  8.6   every political committee and, political fund, and conduit fund 
  8.7   shall begin to file the reports required by this section in the 
  8.8   first year it receives contributions or transfers or makes 
  8.9   expenditures or transfers in excess of $100 and shall continue 
  8.10  to file until the committee or fund is terminated. 
  8.11     Sec. 12.  Minnesota Statutes 1998, section 10A.20, 
  8.12  subdivision 2, is amended to read: 
  8.13     Subd. 2.  [TIME FOR FILING.] The reports shall be filed 
  8.14  with the board on or before January 31 of each year and 
  8.15  additional reports shall be filed as required and in accordance 
  8.16  with clauses (a) and (b).  
  8.17     (a) In each year in which the name of the candidate is on 
  8.18  the ballot, the report of the principal campaign committee shall 
  8.19  be filed 15 days before a primary and ten days before a general 
  8.20  election, seven days before a special primary and a special 
  8.21  election, and ten days after a special election cycle.  The 
  8.22  report due after a special election may be filed on January 31 
  8.23  following the special election if the special election is held 
  8.24  not more than 60 days before that date.  
  8.25     (b) In each general election year political committees and 
  8.26  political funds other than principal campaign committees, 
  8.27  political funds, and conduit funds shall file reports ten 15 
  8.28  days before a primary and ten days before a general election.  
  8.29     If a scheduled filing date falls on a Saturday, Sunday or 
  8.30  legal holiday, the filing date shall be the next regular 
  8.31  business day. 
  8.32     Sec. 13.  Minnesota Statutes 1998, section 10A.20, 
  8.33  subdivision 3, is amended to read: 
  8.34     Subd. 3.  [CONTENTS OF REPORT; POLITICAL COMMITTEES AND 
  8.35  POLITICAL FUNDS.] Each report by a political committee or 
  8.36  political fund under this section shall disclose: 
  9.1      (a) The amount of liquid assets on hand at the beginning of 
  9.2   the reporting period; 
  9.3      (b) The name, address and employer, or occupation if 
  9.4   self-employed, of each individual, political committee or 
  9.5   political fund who within the year has made one or more 
  9.6   transfers or donations in kind to the political committee or 
  9.7   political fund, including the purchase of tickets for all fund 
  9.8   raising efforts, which in aggregate exceed $100 for legislative 
  9.9   or statewide candidates or ballot questions, together with the 
  9.10  amount and date of each transfer or donation in kind, and the 
  9.11  aggregate amount of transfers and donations in kind within the 
  9.12  year from each source so disclosed.  A donation in kind shall be 
  9.13  disclosed at its fair market value.  An approved expenditure is 
  9.14  listed as a donation in kind.  A donation in kind is considered 
  9.15  consumed in the reporting period in which it is received.  The 
  9.16  names of contributors shall be listed in alphabetical order; 
  9.17     (c) The sum of contributions to the political committee or 
  9.18  political fund during the reporting period; 
  9.19     (d) Each loan made or received by the political committee 
  9.20  or political fund within the year in aggregate in excess of 
  9.21  $100, continuously reported until repaid or forgiven, together 
  9.22  with the name, address, occupation and the principal place of 
  9.23  business, if any, of the lender and any endorser and the date 
  9.24  and amount of the loan.  If any loan made to the principal 
  9.25  campaign committee of a candidate is forgiven at any time or 
  9.26  repaid by any entity other than that principal campaign 
  9.27  committee, it shall be reported as a contribution for the year 
  9.28  in which the loan was made; 
  9.29     (e) Each receipt in excess of $100 not otherwise listed 
  9.30  under clauses (b) to (d); 
  9.31     (f) The sum of all receipts of the political committee or 
  9.32  political fund during the reporting period; 
  9.33     (g) The name and address of each individual or association 
  9.34  to whom aggregate expenditures, including approved expenditures, 
  9.35  have been made by or on behalf of the political committee or 
  9.36  political fund within the year in excess of $100, together with 
 10.1   the amount, date and purpose of each expenditure and the name 
 10.2   and address of, and office sought by, each candidate on whose 
 10.3   behalf the expenditure was made, identification of the ballot 
 10.4   question which the expenditure is intended to promote or defeat, 
 10.5   and in the case of independent expenditures made in opposition 
 10.6   to a candidate, the name, address and office sought for each 
 10.7   such candidate; 
 10.8      (h) The sum of all expenditures made by or on behalf of the 
 10.9   political committee or political fund during the reporting 
 10.10  period; 
 10.11     (i) The amount and nature of any advance of credit incurred 
 10.12  by the political committee or political fund, continuously 
 10.13  reported until paid or forgiven.  If any advance of credit 
 10.14  incurred by the principal campaign committee of a candidate is 
 10.15  forgiven at any time by the creditor or paid by any entity other 
 10.16  than that principal campaign committee, it shall be reported as 
 10.17  a donation in kind for the year in which the advance of credit 
 10.18  was incurred; 
 10.19     (j) The name and address of each political committee, 
 10.20  political fund, or principal campaign committee to which 
 10.21  aggregate transfers in excess of $100 have been made within the 
 10.22  year, together with the amount and date of each transfer; 
 10.23     (k) The sum of all transfers made by the political 
 10.24  committee, political fund, or principal campaign committee 
 10.25  during the reporting period; 
 10.26     (l) Except for contributions to a candidate or committee 
 10.27  for a candidate for office in a municipality as defined in 
 10.28  section 471.345, subdivision 1, the name and address of each 
 10.29  individual or association to whom aggregate noncampaign 
 10.30  disbursements in excess of $100 have been made within the year 
 10.31  by or on behalf of a principal campaign committee, political 
 10.32  committee, or political fund, together with the amount, date, 
 10.33  and purpose of each noncampaign disbursement; 
 10.34     (m) The sum of all noncampaign disbursements made within 
 10.35  the year by or on behalf of a principal campaign committee, 
 10.36  political committee, or political fund; 
 11.1      (n) The name and address of a nonprofit corporation that 
 11.2   provides administrative assistance to a political committee or 
 11.3   political fund as authorized by section 211B.15, subdivision 17, 
 11.4   together with the type of administrative assistance provided and 
 11.5   the aggregate fair market value of each type of assistance 
 11.6   provided to the political committee or political fund during the 
 11.7   reporting period; and 
 11.8      (o) A report filed under subdivision 2, clause (b), by a 
 11.9   political committee or political fund that is subject to 
 11.10  subdivision 14, must contain the information required by 
 11.11  subdivision 14, if the political committee or political fund has 
 11.12  solicited and caused others to make aggregate contributions 
 11.13  greater than $5,000 between January 1 of the general election 
 11.14  year and the end of the reporting period.  This disclosure 
 11.15  requirement is in addition to the report required by subdivision 
 11.16  14. 
 11.17     Sec. 14.  Minnesota Statutes 1998, section 10A.20, is 
 11.18  amended by adding a subdivision to read: 
 11.19     Subd. 3b.  [CONTENTS OF REPORT; CONDUIT FUNDS.] (a) Each 
 11.20  report by a conduit fund under this section must disclose the 
 11.21  name of each candidate or political party unit to whom aggregate 
 11.22  transfers in excess of $100 have been made within the year and 
 11.23  the amount and date of each transfer.  The report must also 
 11.24  disclose the sum of all transfers made to candidates and 
 11.25  political party units.  
 11.26     (b) The report of each principal campaign committee and 
 11.27  political party unit under subdivision 3 must disclose the 
 11.28  amount of transfers received through each conduit fund within 
 11.29  the year in aggregate in excess of $100 and the name and 
 11.30  registration number of the conduit fund.  The report must also 
 11.31  disclose the sum of all transfers received through conduit funds.
 11.32     Sec. 15.  Minnesota Statutes 1998, section 211B.15, 
 11.33  subdivision 16, is amended to read: 
 11.34     Subd. 16.  [EMPLOYEE POLITICAL FUND SOLICITATION.] Any 
 11.35  solicitation of political contributions by an employee must be 
 11.36  in writing, informational and nonpartisan in nature, and not 
 12.1   promotional for any particular candidate or group of 
 12.2   candidates.  The solicitation must consist only of a general 
 12.3   request on behalf of an independent political committee (a 
 12.4   conduit fund), as defined in section 10A.01, subdivision 30, and 
 12.5   must state that there is no minimum contribution, that a 
 12.6   contribution or lack thereof will in no way impact the 
 12.7   employee's employment, that the employee must direct the 
 12.8   contribution to candidates of the employee's choice, and that 
 12.9   any response by the employee shall remain confidential and shall 
 12.10  not be directed to the employee's supervisors or managers.  
 12.11  Questions from an employee regarding a solicitation may be 
 12.12  answered orally or in writing consistent with the above 
 12.13  requirements.  Nothing in this subdivision authorizes a 
 12.14  corporate donation of an employee's time prohibited under 
 12.15  subdivision 2.  
 12.16     Sec. 16.  [REPEALER.] 
 12.17     Minnesota Statutes 1998, section 10A.04, subdivision 4a, is 
 12.18  repealed.