HF 3723

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/26/2018 04:32pm

A bill for an act
relating to state government; prohibiting exclusive representatives from requiring
political contributions; prohibiting the state from facilitating payroll deductions
for political purposes; requiring corporations to report to shareholders on political
contributions or expenditures; requiring the Campaign Finance and Public
Disclosure Board to audit shareholder notification reporting; requiring a shareholder
vote for certain political contributions or expenditures; imposing civil penalties;
amending Minnesota Statutes 2016, sections 16A.133; 179A.06, subdivisions 3,
6; 181.06, by adding a subdivision; 181.063; 211B.15, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapters 10A; 179A; 211B.

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

Section 1.

new text begin [10A.205] CORPORATE POLITICAL ACTIVITY REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Receipt of reports. new text end

new text begin The board must maintain a copy of each shareholder
notification report received under section 211B.155 on the board's Web site.
new text end

new text begin Subd. 2. new text end

new text begin Annual audit. new text end

new text begin On an annual basis, the board shall randomly audit the extent
of compliance or noncompliance by corporations required to provide shareholder notification
under section 211B.155. No later than June 30 of each year, the board shall submit a report
to the legislature on the results of audits conducted in the preceding year. An audit required
by this subdivision shall be conducted in the manner provided for audits and investigations
by the board under section 10A.022, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 16A.133, is amended to read:

16A.133 CREDIT UNION, PARKING, OTHER DEDUCTIONS.

Subdivision 1.

Payroll direct deposit and deductions.

An agency head in the executive,
judicial, and legislative branch shall, upon written request signed by an employee, directly
deposit all or part of an employee's pay to those credit unions or financial institutions, as
defined in section 47.015, designated by the employee.

An agency head must, upon written request of an employee, deduct from the pay of the
employee a requested amount to be paid to the Minnesota Benefit Association, or to any
organizations contemplated by section 179A.06, of which the employee is a member. new text begin Any
such deductions must comply with section 181.06, subdivision 3, as applicable.
new text end

Subd. 2.

Parking, and the like.

With the written consent of an employee, an agency
head shall deduct from the employee's pay the amount needed to pay for services or facilities
supplied under law to the employee by the state. Food and housing, garage and parking
facilities, and other facilities and services may be paid for in this way. new text begin Any such deductions
must comply with section 181.06, subdivision 3, as applicable.
new text end

Sec. 3.

Minnesota Statutes 2016, section 179A.06, subdivision 3, is amended to read:

Subd. 3.

Fair share fee.

new text begin (a) new text end An exclusive representative may require employees who
are not members of the exclusive representative to contribute a fair share fee for services
rendered by the exclusive representative. The fair share fee must be equal to the regular
membership dues of the exclusive representative, less the cost of benefits financed through
the dues and available only to members of the exclusive representative. In no event may
the fair share fee exceed 85 percent of the regular membership dues. The exclusive
representative shall provide advance written notice of the amount of the fair share fee to
the employer and to unit employees who will be assessed the fee. The employer shall provide
the exclusive representative with a list of all unit employees.

A challenge by an employee or by a person aggrieved by the fee must be filed in writing
with the commissioner, the public employer, and the exclusive representative within 30
days after receipt of the written notice. All challenges must specify those portions of the
fee challenged and the reasons for the challenge. The burden of proof relating to the amount
of the fair share fee is on the exclusive representative. The commissioner shall hear and
decide all issues in these challenges.

The employer shall deduct the fee from the earnings of the employee and transmit the
fee to the exclusive representative 30 days after the written notice was provided. If a challenge
is filed, the deductions for a fair share fee must be held in escrow by the employer pending
a decision by the commissioner.

new text begin (b) Any public employer deduction of union dues or fair share fees from public employee
wages must comply with the requirements of section 181.06, subdivision 3.
new text end

Sec. 4.

Minnesota Statutes 2016, section 179A.06, subdivision 6, is amended to read:

Subd. 6.

Dues checkoff.

Public employees have the right to request and be allowed dues
checkoff for the exclusive representative. In the absence of an exclusive representative,
public employees have the right to request and be allowed dues checkoff for the organization
of their choice. new text begin Employers must comply with the requirements of section 181.06, subdivision
3, in association with any such requests.
new text end

Sec. 5.

new text begin [179A.065] VOLUNTARY CONTRIBUTIONS.
new text end

new text begin (a) This section applies to an exclusive representative governed by this chapter and
applies to collective bargaining agreements that are required to be submitted to the legislature
under section 3.855 or that cover 10,000 or more public employees.
new text end

new text begin (b) An exclusive representative may not require a contribution to a candidate, principal
campaign committee, political party, political committee, political fund, or political action
committee as a condition of membership or participation in the exclusive representative.
new text end

new text begin (c) An exclusive representative wishing to make expenditures for political purposes
must make the expenditures only from a separate political fund that is apart from any fund
or account containing money received by an exclusive representative as dues. The exclusive
representative must ensure that each contribution to the political fund is made voluntarily
and specifically to that fund. An exclusive representative may not transfer money paid as
dues to its political fund. For purposes of this section, "political purposes" means an act
done with the intent or in a way to influence or tend to influence, directly or indirectly, any
person to refrain from voting or to vote for or against any ballot question, or for or against
any candidate for public office at any caucus, political convention, primary, or election.
new text end

Sec. 6.

Minnesota Statutes 2016, section 181.06, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Certain payroll deductions; public employees. new text end

new text begin (a) For the purposes of this
subdivision:
new text end

new text begin (1) "public employee" has the meaning given in section 179A.03, subdivision 14;
new text end

new text begin (2) "covered public employee" means:
new text end

new text begin (i) a public employee covered by a collective bargaining agreement required to be
submitted to the legislature under section 3.855; or
new text end

new text begin (ii) a public employee who is a member of an exclusive representative that represents
10,000 or more members who are public employees in the state.
new text end

new text begin (b) Notwithstanding anything to the contrary, payroll deductions or assignments of wages
to pay the portion of covered public employee union dues or fair share fees used for political
purposes under section 179A.065 must conform to the requirements of this subdivision.
new text end

new text begin (c) An employer must not deduct or allow the deduction of the portion of union dues or
fair share fees used for political purposes under section 179A.065 from the wages of any
covered public employee.
new text end

Sec. 7.

Minnesota Statutes 2016, section 181.063, is amended to read:

181.063 ASSIGNMENT OF WAGES, PUBLIC EMPLOYEES.

new text begin (a) new text end Any officer or employee of a county, town, city, school district, or the state, or any
department thereof, has the same right to sell, assign, or transfer salary or wages as any
officer of or person employed by any corporation, firm, or person.

new text begin (b) Any public employer deduction of fair share fees or union dues from public employee
wages must comply with the requirements of section 181.06, subdivision 3.
new text end

Sec. 8.

Minnesota Statutes 2016, section 211B.15, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Shareholder consent. new text end

new text begin (a) A corporation may not engage in contribution or
expenditure activity for political purposes that, in the aggregate, exceeds $10,000 in a
calendar year, unless the shareholders of the corporation have approved the contribution or
expenditure activity by majority vote. The vote must be conducted according to the rules
and bylaws of the corporation, and may authorize a specific contribution or expenditure, or
may authorize a total budget for all contribution and expenditure activity by the corporation
in a calendar year. The date and result of a vote required under this subdivision must be
included in the shareholder report required by section 10A.205.
new text end

new text begin (b) As used in this subdivision, "shareholders" means, in the case of a corporation
registered to do business in this state, all shareholders of the corporation residing in the
state; in the case of a corporation incorporated in this state, all shareholders of the corporation;
and in the case of a partnership registered to do business in this state, all partners.
new text end

Sec. 9.

new text begin [211B.155] CORPORATE POLITICAL ACTIVITY; NOTIFICATION TO
SHAREHOLDERS AND PUBLIC REPORT REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "corporation" has the meaning provided in section 211B.15, subdivision 1; and
new text end

new text begin (2) "shareholders" has the meaning provided in section 211B.15, subdivision 4a.
new text end

new text begin Subd. 2. new text end

new text begin Notification to shareholders. new text end

new text begin (a) At least quarterly, a corporation that directly
or indirectly makes a contribution or expenditure for political purposes must notify the
corporation's shareholders in writing of the nature of its contribution and expenditure activity
during the previous quarter. For purposes of this section, a corporation makes a contribution
or expenditure if the contribution or expenditure is funded through its general corporate
treasury, a separate segregated fund, or any other entity or account established and controlled
by the corporation.
new text end

new text begin (b) A notification required by this section must contain:
new text end

new text begin (1) the date and amount of each contribution and expenditure;
new text end

new text begin (2) if the contribution or expenditure was made to support or oppose a candidate for
public office, the office sought by the candidate, the candidate's political party affiliation,
and whether the contribution or expenditure was made in support of, or in opposition to,
the candidate;
new text end

new text begin (3) if the contribution or expenditure was made to support or oppose a ballot question,
a description of the ballot question and whether the contribution or expenditure was made
in support of, or in opposition to, the question;
new text end

new text begin (4) if the contribution or expenditure was made to advocate or raise awareness about a
policy issue, the nature of the issue and the corporation's position on the issue;
new text end

new text begin (5) if applicable, the date and result of any shareholder votes required to be conducted
under section 211B.15, subdivision 4a, and the amount and nature of activity authorized by
the vote; and
new text end

new text begin (6) the name of any corporate officer directly advocating for or approving the
corporation's involvement in support of or opposition to the candidate, ballot question, or
policy issue.
new text end

new text begin (c) A corporation required to provide a notification to shareholders under this section
must make a copy of the notification accessible on the corporation's Web site for at least
one year following the date of the notification.
new text end

new text begin Subd. 3. new text end

new text begin Public report. new text end

new text begin A corporation required to provide a notification to shareholders
under this section must provide a copy of the notification to the Campaign Finance and
Public Disclosure Board, subject to the requirements and penalties provided in section
10A.025 for filing reports.
new text end

new text begin Subd. 4. new text end

new text begin Penalty. new text end

new text begin A corporation convicted of violating this section is subject to the
penalties provided in section 211B.15, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018, and applies to contributions
and expenditures made on or after that date.
new text end