HF 2393

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:12pm

A bill for an act
relating to lobbyists; modifying lobbyist registration and reporting; creating
definitions; amending Minnesota Statutes 2022, sections 10A.01, subdivision 21,
by adding subdivisions; 10A.025, subdivision 4; 10A.03, subdivision 2, by adding
a subdivision; 10A.04, subdivisions 3, 4, 6, 9; repealing Minnesota Rules, part
4511.0600, subpart 5.

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

Section 1.

Minnesota Statutes 2022, section 10A.01, is amended by adding a subdivision
to read:

new text begin Subd. 12a. new text end

new text begin Designated lobbyist. new text end

new text begin "Designated lobbyist" means the lobbyist responsible
for reporting the lobbying disbursements and activity of the entity the lobbyist represents.
new text end

Sec. 2.

Minnesota Statutes 2022, section 10A.01, is amended by adding a subdivision to
read:

new text begin Subd. 17d. new text end

new text begin General lobbying category. new text end

new text begin "General lobbying category" means an area of
interest for lobbying for an entity that is on a list of categories specified by the board.
new text end

Sec. 3.

Minnesota Statutes 2022, section 10A.01, is amended by adding a subdivision to
read:

new text begin Subd. 19a. new text end

new text begin Legislative action. new text end

new text begin "Legislative action" means any of the following:
new text end

new text begin (1) the development of prospective legislation, including the development of amendment
language to prospective legislation;
new text end

new text begin (2) the review, modification, adoption, or rejection by a member of the legislature or an
employee of the legislature, if applicable, of any (i) bill, (ii) amendment, (iii) resolution,
(iv) confirmation considered by the legislature, or (v) report;
new text end

new text begin (3) the development of, in conjunction with a constitutional officer, prospective legislation
or a request for support or opposition to introduced legislation; and
new text end

new text begin (4) the action of the governor in approving or vetoing any act of the legislature or portion
of an act of the legislature.
new text end

Sec. 4.

Minnesota Statutes 2022, section 10A.01, subdivision 21, is amended to read:

Subd. 21.

Lobbyist.

(a) "Lobbyist" means an individual:

(1) engaged for pay or other consideration of more than $3,000 from all sources in any
year:

(i) for the purpose of attempting to influence legislative or administrative action, or the
official action of a metropolitan governmental unit, by communicating or urging others to
communicate with public or local officials; or

(ii) from a business whose primary source of revenue is derived from facilitating
government relations or government affairs services between two third parties; or

(2) who spends more than deleted text begin $250 deleted text end new text begin $3,000 of the individual's personal funds new text end , not including
the individual's own traveling expenses and membership dues, in any year for the purpose
of attempting to influence legislative or administrative action, or the official action of a
metropolitan governmental unit, by communicating or urging others to communicate with
public or local officials.

(b) "Lobbyist" does not include:

(1) a public official;

(2) an employee of the state, including an employee of any of the public higher education
systems;

(3) an elected local official;

(4) a nonelected local official or an employee of a political subdivision acting in an
official capacity, unless the nonelected official or employee of a political subdivision spends
more than 50 hours in any month attempting to influence legislative or administrative action,
or the official action of a metropolitan governmental unit other than the political subdivision
employing the official or employee, by communicating or urging others to communicate
with public or local officials, including time spent monitoring legislative or administrative
action, or the official action of a metropolitan governmental unit, and related research,
analysis, and compilation and dissemination of information relating to legislative or
administrative policy in this state, or to the policies of metropolitan governmental units;

(5) a party or the party's representative appearing in a proceeding before a state board,
commission, or agency of the executive branch unless the board, commission, or agency is
taking administrative action;

(6) an individual while engaged in selling goods or services to be paid for by public
funds;

(7) a news medium or its employees or agents while engaged in the publishing or
broadcasting of news items, editorial comments, or paid advertisements which directly or
indirectly urge official action;

(8) a paid expert witness whose testimony is requested by the body before which the
witness is appearing, but only to the extent of preparing or delivering testimony; or

(9) a party or the party's representative appearing to present a claim to the legislature
and communicating to legislators only by the filing of a claim form and supporting documents
and by appearing at public hearings on the claim.

(c) An individual who volunteers personal time to work without pay or other consideration
on a lobbying campaign, and who does not spend more than the limit in paragraph (a), clause
(2), need not register as a lobbyist.

(d) An individual who provides administrative support to a lobbyist and whose salary
and administrative expenses attributable to lobbying activities are reported as lobbying
expenses by the lobbyist, but who does not communicate or urge others to communicate
with public or local officials, need not register as a lobbyist.

Sec. 5.

Minnesota Statutes 2022, section 10A.01, is amended by adding a subdivision to
read:

new text begin Subd. 26b. new text end

new text begin Official action of metropolitan governmental units. new text end

new text begin "Official action of
metropolitan governmental units" means any action that requires a vote or approval by one
or more elected local officials while acting in their official capacity; or an action by an
appointed or employed local official to make, to recommend, or to vote on as a member of
the governing body, major decisions regarding the expenditure or investment of public
money.
new text end

Sec. 6.

Minnesota Statutes 2022, section 10A.01, is amended by adding a subdivision to
read:

new text begin Subd. 35c. new text end

new text begin Specific subject of interest. new text end

new text begin "Specific subject of interest" means a particular
topic or area of lobbying interest within a general lobbying category.
new text end

Sec. 7.

Minnesota Statutes 2022, section 10A.025, subdivision 4, is amended to read:

Subd. 4.

Changes and corrections.

Material changes in information previously submitted
and corrections to a report or statement must be reported in writing to the board within ten
days following the date of the event prompting the change or the date upon which the person
filing became aware of the inaccuracy. The change or correction must identify the form and
the paragraph containing the information to be changed or corrected. new text begin A request from the
board to a lobbyist to provide more detailed information about a specific subject of interest
disclosed on a lobbyist disbursement report is a change or correction governed by this
subdivision.
new text end

A person who willfully fails to report a material change or correction is subject to a civil
penalty imposed by the board of up to $3,000. A willful violation of this subdivision is a
gross misdemeanor.

The board must send a written notice to any individual who fails to file a report required
by this subdivision. If the individual fails to file the required report within ten business days
after the notice was sent, the board may impose a late filing fee of $25 per day up to $1,000
starting on the 11th day after the notice was sent. The board may send an additional notice
by certified mail to an individual who fails to file a report within ten business days after the
first notice was sent by the board. The certified notice must state that if the individual does
not file the requested report within ten business days after the certified notice was sent, the
individual may be subject to a civil penalty for failure to file a report. An individual who
fails to file a report required by this subdivision within ten business days after the certified
notice was sent by the board is subject to a civil penalty imposed by the board of up to
$1,000.

Sec. 8.

Minnesota Statutes 2022, section 10A.03, subdivision 2, is amended to read:

Subd. 2.

Form.

The board must prescribe a registration form, which must include:

(1) the name, address, and email address of the lobbyist;

(2) the principal place of business of the lobbyist;

(3) the name and address of each individual, association, political subdivision, or public
higher education system, if any, by whom the lobbyist is retained or employed or on whose
behalf the lobbyist appears;

(4) the website address of each association, political subdivision, or public higher
education system identified under clause (3), if the entity maintains a website; deleted text begin and
deleted text end

(5) deleted text begin a deleted text end new text begin the new text end general deleted text begin description of the subject or subjects deleted text end new text begin lobbying categories new text end on which the
lobbyist expects to lobby deleted text begin . deleted text end new text begin on behalf of a represented entity; and
new text end

new text begin (6) new text end if the lobbyist lobbies on behalf of an association, deleted text begin the registration form must include deleted text end
the name and address of the officers and directors of the association.

Sec. 9.

Minnesota Statutes 2022, section 10A.03, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin General lobbying categories and specific subjects of interest. new text end

new text begin A list of general
lobbying categories and specific subjects of interest must be specified by the board and
updated periodically based on public comment and information provided by lobbyists. The
board must publish on its website the current list of general lobbying categories and specific
subjects of interest. Chapter 14 and section 14.386 do not apply to the specification,
publication, or periodic updates of the list of general lobbying categories and specific subjects
of interest.
new text end

Sec. 10.

Minnesota Statutes 2022, section 10A.04, subdivision 3, is amended to read:

Subd. 3.

Information to lobbyist.

An deleted text begin employer or employee about deleted text end new text begin entity or lobbyist new text end
whose activities deleted text begin a deleted text end new text begin are reported to the board by another new text end lobbyist is required to deleted text begin report must deleted text end
provide the information required by subdivision 4 to the lobbyist no later than five days
before the prescribed filing date.

Sec. 11.

Minnesota Statutes 2022, section 10A.04, subdivision 4, is amended to read:

Subd. 4.

Content.

(a) A report under this section must include information the board
requires from the registration form and the information required by this subdivision for the
reporting period.

new text begin (b) A lobbyist must report the specific subjects of interest for an entity represented by
the lobbyist on each report submitted under this section. A lobbyist must describe a specific
subject of interest in the report with enough information to show the particular issue of
importance to the entity represented.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A lobbyist must report deleted text begin the lobbyist's total disbursements on lobbying, separately
listing lobbying to influence legislative action, lobbying to influence administrative action,
and lobbying to influence the official actions of a metropolitan governmental unit, and a
breakdown of disbursements for each of those kinds of lobbying into categories specified
by the board, including but not limited to the cost of publication and distribution of each
publication used in lobbying; other printing; media, including the cost of production; postage;
travel; fees, including allowances; entertainment; telephone and telegraph; and other
expenses. deleted text end new text begin every state agency that had administrative action that the represented entity sought
to influence during the reporting period. The lobbyist must report the specific subjects of
interest for each administrative action and the revisor rule draft number assigned to the
administrative rulemaking.
new text end

new text begin (d) A lobbyist must report every metropolitan governmental unit that considered official
action that the represented entity sought to influence during the reporting period. The lobbyist
must report the specific subjects of interest for each action.
new text end

new text begin (e) A lobbyist must report general lobbying categories and up to four specific subjects
of interest related to each general lobbying category on which the lobbyist attempted to
influence legislative action during the reporting period. If the lobbyist attempted to influence
legislative action on more than four specific subjects of interest for a general lobbying
category, the lobbyist, in consultation with the represented entity, must determine which
four specific subjects of interest were the entity's highest priorities during the reporting
period and report only those four subjects.
new text end

new text begin (f) A lobbyist must report the Public Utilities Commission project name for each rate
setting, power plant and powerline siting, or granting of certification of need before the
Public Utilities Commission that the represented entity sought to influence during the
reporting period.
new text end

deleted text begin (c) deleted text end new text begin (g) new text end A lobbyist must report the amount and nature of each gift, item, or benefit,
excluding contributions to a candidate, equal in value to $5 or more, given or paid to any
official, as defined in section 10A.071, subdivision 1, by the lobbyist or an employer or
employee of the lobbyist. The list must include the name and address of each official to
whom the gift, item, or benefit was given or paid and the date it was given or paid.

deleted text begin (d) deleted text end new text begin (h) new text end A lobbyist must report each original source of money in excess of $500 in any
year used for the purpose of lobbying to influence legislative action, administrative action,
or the official action of a metropolitan governmental unit. The list must include the name,
address, and employer, or, if self-employed, the occupation and principal place of business,
of each payer of money in excess of $500.

deleted text begin (e) deleted text end new text begin (i) new text end On deleted text begin the deleted text end new text begin each new text end report deleted text begin due June 15 deleted text end , deleted text begin the deleted text end new text begin a new text end lobbyist must deleted text begin provide a deleted text end new text begin disclose the new text end general
deleted text begin description of the subjects deleted text end new text begin lobbying categories that were new text end lobbied new text begin on new text end in the deleted text begin previous 12
months deleted text end new text begin reporting period new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 12.

Minnesota Statutes 2022, section 10A.04, subdivision 6, is amended to read:

Subd. 6.

Principal reports.

(a) A principal must report to the board as required in this
subdivision by March 15 for the preceding calendar year.

(b) deleted text begin Except as provided in paragraph (d), deleted text end The principal must report the total amount,
rounded to the nearest deleted text begin $20,000 deleted text end new text begin $10,000 new text end , spent by the principal during the preceding calendar
year deleted text begin to influence legislative action, administrative action, and the official action of
metropolitan governmental units. deleted text end new text begin on each type of lobbying listed below:
new text end

new text begin (1) lobbying to influence legislative action;
new text end

new text begin (2) lobbying to influence administrative action, other than lobbying described in clause
(3);
new text end

new text begin (3) lobbying to influence administrative action in cases of rate setting, power plant and
powerline siting, and granting of certificates of need under section 216B.243; and
new text end

new text begin (4) lobbying to influence official action of metropolitan governmental units.
new text end

(c) deleted text begin Except as provided in paragraph (d), deleted text end new text begin For each type of lobbying listed in paragraph
(b), new text end the principal must report deleted text begin under this subdivision deleted text end a total amount that includes:

(1) new text begin the portion of new text end all direct payments new text begin for compensation and benefits paid new text end by the principal
to lobbyists in this state new text begin for that type of lobbying new text end ;

(2) new text begin the portion of new text end all expenditures for advertising, mailing, research, new text begin consulting, surveys,
expert testimony, studies, reports, new text end analysis, compilation and dissemination of information, new text begin
social media new text end and public relations campaigns deleted text begin related to legislative action, administrative
action, or the official action of metropolitan governmental units deleted text end new text begin , and legal counsel used to
support that type of lobbying new text end in this state; and

(3) new text begin a reasonable good faith estimate of the portion of new text end all salaries and administrative new text begin
overhead new text end expenses attributable to activities of the principal deleted text begin relating to efforts to influence
legislative action, administrative action, or the official action of metropolitan governmental
units deleted text end new text begin for that type of lobbying new text end in this state.

deleted text begin (d) A principal that must report spending to influence administrative action in cases of
rate setting, power plant and powerline siting, and granting of certificates of need under
section 216B.243 must report those amounts as provided in this subdivision, except that
they must be reported separately and not included in the totals required under paragraphs
(b) and (c).
deleted text end

new text begin (d) The principal must report disbursements made and obligations incurred that exceed
$2,000 for paid advertising used for the purpose of urging members of the public to contact
public or local officials to influence official actions during the reporting period. Paid
advertising includes the cost to boost the distribution of an advertisement on social media.
The report must provide the date that the advertising was purchased, the name and address
of the vendor, a description of the advertising purchased, and any specific subjects of interest
addressed by the advertisement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 13.

Minnesota Statutes 2022, section 10A.04, subdivision 9, is amended to read:

Subd. 9.

Reporting by multiple lobbyists representing the same entity.

Clauses (1)
to (6) apply when a single individual, association, political subdivision, or public higher
education system is represented by more than one lobbyist.

(1) The entity must appoint one designated lobbyist to report lobbyist disbursements
made by the entity. new text begin An entity represented by more than one lobbyist may only have one
designated lobbyist at any given time. new text end The designated lobbyist must indicate that status on
the periodic reports of lobbyist disbursements.

(2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists
for the same entity, in which case, the other lobbyists are persons whose activities the
reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision
3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and
registration numbers of the other lobbyists whose activities are included in the report.

(3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required
to file lobbyist disbursement reports.

(4) A lobbyist whose lobbying disbursements are provided to the board through a
reporting lobbyist must supply all relevant information on disbursements to the reporting
lobbyist no later than five days before the prescribed filing date.

(5) The reporting periods and due dates for a reporting lobbyist are those provided in
subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this
subdivision.

(6) The reporting lobbyist must indicate the names and registration numbers of any
lobbyists who did not provide their lobbying disbursements for inclusion in a report. The
late filing provisions in subdivision 5 apply to lobbyists who fail to report information to
the reporting lobbyist.

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 4511.0600, subpart 5, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Rule: 23-02784

4511.0600 REPORTING DISBURSEMENTS.

Subp. 5.

Specific disbursement categories.

Lobbying disbursements must be reported based on the categories in items A to I.

A.

"Lobbying materials" includes the cost of production, purchase, or other acquisition of materials that directly support lobbying.

B.

"Media costs" includes the cost of media space or time, including website design and maintenance, used for lobbying activities. The cost of preparation of materials for use in the media is reported in the lobbying materials category.

C.

"Telephone and communications" includes costs for local and long-distance telephone services, electronic mail, pagers, cellular telephones, facsimile distribution services, telegraph, and other communications services.

D.

"Postage and distribution" includes costs of postage from the United States Postal Service as well as other distribution costs associated with lobbying activities.

E.

"Fees and allowances" includes fees for consulting, surveys, polls, legal counsel, or other services as well as expenses associated with those services.

F.

"Entertainment" includes costs of all entertainment associated with any situation where lobbying activities take place.

G.

"Food and beverages" includes costs of all food and beverages associated with any situation where lobbying activities take place.

H.

"Travel and lodging" includes costs of all travel and lodging associated with any lobbying activity, excluding the costs of the lobbyist's own travel to accomplish the lobbying activity.

I.

"Other disbursements" includes general administration and overhead and any other lobbyist disbursements not reported in other categories.