SF 567

as introduced - 88th Legislature (2013 - 2014) Posted on 03/21/2013 01:11pm

A bill for an act
relating to state and local government; establishing a public integrity law;
prohibiting certain acts; establishing requirements; making conforming changes;
amending Minnesota Statutes 2012, sections 10A.01, by adding a subdivision;
10A.07; 10A.08; 11A.075; 11A.08, subdivision 6; 13.607; 15.066, subdivision 2;
32C.01, subdivision 8; 85A.01, subdivision 5; 85B.02, subdivision 8; 116O.03,
subdivision 11; 216A.035; 356A.06, subdivision 4; 383B.053, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 10A; repealing
Minnesota Statutes 2012, sections 10A.01, subdivision 5; 10A.09, subdivisions
1, 2, 3, 5, 6, 6a, 7, 8; Minnesota Rules, parts 4501.0200; 4501.0400; 4505.0010;
4505.0100; 4505.0700; 4505.0900.

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

ARTICLE 1

PUBLIC INTEGRITY

Section 1.

Minnesota Statutes 2012, section 10A.01, is amended by adding a
subdivision to read:

new text begin Subd. 26a. new text end

new text begin Official. new text end

new text begin "Official" means a public official or a local official of a
metropolitan governmental unit.
new text end

Sec. 2.

Minnesota Statutes 2012, section 10A.07, is amended to read:

10A.07 deleted text begin CONFLICTS OF INTEREST deleted text end new text begin PUBLIC INTEGRITY new text end .

deleted text begin Subdivision 1. deleted text end

deleted text begin Disclosure of potential conflicts. deleted text end

deleted text begin A public official or a local
official elected to or appointed by a metropolitan governmental unit who in the discharge
of official duties would be required to take an action or make a decision that would
substantially affect the official's financial interests or those of an associated business,
unless the effect on the official is no greater than on other members of the official's
business classification, profession, or occupation, must take the following actions:
deleted text end

deleted text begin (1) prepare a written statement describing the matter requiring action or decision and
the nature of the potential conflict of interest;
deleted text end

deleted text begin (2) deliver copies of the statement to the official's immediate superior, if any; and
deleted text end

deleted text begin (3) if a member of the legislature or of the governing body of a metropolitan
governmental unit, deliver a copy of the statement to the presiding officer of the body
of service.
deleted text end

deleted text begin If a potential conflict of interest presents itself and there is insufficient time to
comply with clauses (1) to (3), the public or local official must orally inform the superior
or the official body of service or committee of the body of the potential conflict.
deleted text end

new text begin Subdivision 1a. new text end

new text begin Title and applicability. new text end

new text begin Sections 10A.07 to 10A.091 constitute
the Minnesota Public Integrity Law and apply to public officials and local officials of
metropolitan governmental units.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Required actions. deleted text end

deleted text begin If the official is not a member of the legislature or of the
governing body of a metropolitan governmental unit, the superior must assign the matter,
if possible, to another employee who does not have a potential conflict of interest. If there
is no immediate superior, the official must abstain, if possible, in a manner prescribed by
the board from influence over the action or decision in question. If the official is a member
of the legislature, the house of service may, at the member's request, excuse the member
from taking part in the action or decision in question. If the official is not permitted or is
otherwise unable to abstain from action in connection with the matter, the official must
file a statement describing the potential conflict and the action taken. A public official
must file the statement with the board and a local official must file the statement with the
governing body of the official's political subdivision. The statement must be filed within a
week of the action taken.
deleted text end

new text begin Subd. 2a. new text end

new text begin Statement of findings and intent. new text end

new text begin The legislature, having considered the
importance of the integrity and independent judgment of Minnesota officials, makes the
following findings and statements of intent:
new text end

new text begin (1) It is essential to the proper conduct and operation of government that officials be
independent and impartial and that public office not be used for private gain other than
the remuneration provided by law. The public interest, therefore, requires that the law
protect against any conflict of interest and establish standards for the conduct of elected or
appointed officials in situations where conflicts may exist.
new text end

new text begin (2) It is also essential that government attract those citizens best qualified to serve.
Thus, any law related to public integrity must be so designed and administered as not to
impede unreasonably or unnecessarily the recruitment and retention by government of
those best qualified to serve. Officials should not be denied the opportunity available to all
other citizens to acquire and retain private financial interests.
new text end

new text begin (3) It is the policy of the state that officials shall not permit any financial interest,
direct or indirect; any business transaction or professional activity; or any obligation of
any nature to substantially conflict with the proper discharge of the official's duties in
the public interest.
new text end

new text begin (4) It is the policy of the state that officials shall not use the public resources they
control in their official positions to influence their own election to office, to influence the
election of others to office, or to promote or defeat a ballot question unless promoting or
defeating a particular ballot question is part of the mission of the public entity in which
the official serves.
new text end

new text begin (5) It is the intent of the Minnesota Public Integrity Law to implement these
objectives of protecting the integrity of government and of facilitating the recruitment and
retention of qualified personnel by prescribing reasonable requirements for disclosure of
conflicts of interest and for actions to be taken upon the occurrence of a conflict of interest.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Interest in contract; local officials. deleted text end

deleted text begin This section does not apply to a local
official with respect to a matter governed by sections 471.87 and 471.88.
deleted text end

new text begin Subd. 3a. new text end

new text begin Conflict of interest defined. new text end

new text begin (a) A conflict of interest occurs:
new text end

new text begin (1) when there is a conflict between the public duty and a private interest of an
official, in which the official's private interest could improperly influence the performance
of the official's public duties and responsibilities; or
new text end

new text begin (2) when an official is called upon to take action, make a decision, refrain from
taking action, or refrain from making a decision in a matter in which the official knows
or has reason to know the official has a financial interest.
new text end

new text begin (b) A potential conflict of interest arises at the time that an official learns of a matter
in which the official will be called upon to take action or make a decision that could affect
the official or a financial interest of the official differently than the public generally or a
significant segment of the public.
new text end

new text begin (c) It is not a conflict of interest for an official who serves on a board, commission,
or similar entity as the representative of a political subdivision, school board, public
higher education system, or similar governmental or quasi-governmental entity to take
action or make a decision on matters that may have an effect on the financial interests of
the entity that the official represents unless such action or decision also affects other
financial interests of the official.
new text end

new text begin Subd. 4. new text end

new text begin General prohibitions. new text end

new text begin (a) An official shall not:
new text end

new text begin (1) use an official position or office, take or fail to take any action, or make any
decision in a matter in which the official has a financial interest;
new text end

new text begin (2) use or make available public resources to make expenditures to influence the
nomination or election of candidates; or
new text end

new text begin (3) use or make available public resources to expressly advocate for or against a
ballot question unless the public entity whose resources are being used has made a formal
and public determination that such use is permitted and that advocacy for or against the
ballot question is part of the mission of the public entity in which the official serves.
new text end

new text begin (b) Except as authorized in section 471.87, an official who is authorized to take
part in any manner in making any sale, lease, or contract in an official capacity shall not
voluntarily have a financial interest in that sale, lease, or contract or personally benefit
financially from that sale, lease, or contract.
new text end

new text begin Subd. 5. new text end

new text begin Financial interest. new text end

new text begin (a) An official has a financial interest in an action or
decision if it is reasonably foreseeable that the action or decision will have a material
financial effect, distinguishable from the effect on the public generally or on a significant
segment of the public, on any of the following:
new text end

new text begin (1) the official or a relative of the official;
new text end

new text begin (2) any source of income other than a gift, aggregating more than $2,500 in value,
provided to, promised to, or received by the official or the official's spouse within 12
months prior to the time the action or decision comes before the official;
new text end

new text begin (3) any business entity in which the official has direct or indirect investments that
are worth more than $2,500;
new text end

new text begin (4) except as provided in paragraph (b), the client, customer, or other source of
business income of a business, including a sole proprietorship, in which the official has a
direct or indirect ownership interest of at least ten percent and the official's direct or
indirect pro rata share of gross receipts from that client, customer, or other source of
business income is more than $2,500;
new text end

new text begin (5) any business entity in which the official or the official's spouse is a director,
officer, partner, or trustee, or holds a similar position of management;
new text end

new text begin (6) any real property in which the official has a direct or indirect interest worth more
than $5,000, excluding residential homestead real estate and up to 40 acres of agricultural
homestead real estate as defined in section 273.124, subdivision 1, paragraph (a); or
new text end

new text begin (7) any donor of, or any intermediary or agent for a donor of, a gift or gifts
aggregating more than $100 in value provided to, received by, or promised to the official,
the official's spouse, or the official's minor child within the previous 12 months, excluding
gifts from relatives and gifts provided based on personal friendship, unless the official
has reason to believe that, under the circumstances, the gift was provided because of the
official position or employment of the official and not because of the personal friendship,
and also excluding gifts specified by the board in rules or advisory opinions.
new text end

new text begin (b) A financial interest in a matter does not arise with respect to a retail customer
of a business entity engaged in retail sales of goods or services to the public generally
or to a significant segment of the public if the retail customers of the business entity
constitute the public generally or a significant segment of the public, and the amount of
income received by the business entity from the customer for the goods or services is
not distinguishable from the amount of income received from its other retail customers
purchasing similar goods or services.
new text end

new text begin (c) For purposes of this section and section 10A.091, indirect investment or interest
means any investment or interest owned by the spouse or minor child of an official, or by
an agent on behalf of an official, the official's spouse, or the official's minor child.
new text end

new text begin (d) For the purposes of this section and section 10A.091, "the public generally" means
the citizens of the state as a group or the members of an industry, trade, or profession.
new text end

new text begin (e) For purposes of this section and section 10A.091, "a significant segment of
the public" means:
new text end

new text begin (1) any recognized subgroup or specialty of an industry, trade, or profession;
new text end

new text begin (2) a legislative district, county, city, or school district;
new text end

new text begin (3) a segment of the public consisting of a significant number of persons sharing a
characteristic;
new text end

new text begin (4) a significant number of parcels of real estate; and
new text end

new text begin (5) any other group or segment specified in board rules or advisory opinions as
constituting a significant segment of the public.
new text end

new text begin Subd. 6. new text end

new text begin Disclosure of conflicts of interest. new text end

new text begin (a) An official who in the discharge
of official duties has a conflict of interest or a potential conflict of interest must take the
following actions:
new text end

new text begin (1) prepare a written statement describing the matter requiring action or decision and
the nature of the conflict of interest or potential conflict of interest;
new text end

new text begin (2) deliver copies of the statement as follows:
new text end

new text begin (i) if the official is a member of the legislature, to the presiding officer of the body in
which the member serves;
new text end

new text begin (ii) if the official is a member of the governing body of a metropolitan governmental
unit, to the presiding officer of the body of service;
new text end

new text begin (iii) if the official is a member of a board, commission, or other entity, to the chief
executive officer of the board, commission, or other entity and to the chair of the board,
commission, or other entity;
new text end

new text begin (iv) if the official is an employee, to the official's immediate supervisor and to the
chief executive officer of the agency, board, metropolitan governmental unit, or other body
in which the official serves; or
new text end

new text begin (v) if the official who has the conflict of interest or potential conflict of interest is
one of the persons to whom the statement must be delivered under items (i) to (iv), the
official must deliver the statement to the next most senior executive or member; and
new text end

new text begin (3) file a copy of the statement with the board.
new text end

new text begin (b) The statement required in paragraph (a) must be prepared, delivered, and filed
within 24 hours of the time at which the official becomes aware of the conflict of interest
or potential conflict of interest and, in any case, prior to the time that the official is called
upon to take action or make a decision regarding the matter.
new text end

new text begin (c) If a conflict of interest or potential conflict of interest presents itself and there
is insufficient time to comply with the requirements of paragraph (a) within the time
specified in paragraph (b), the official must orally inform the appropriate persons listed in
paragraph (a), clause (2), of the conflict or potential conflict and must comply with the
disclosure requirement of paragraph (b) as soon thereafter as practical.
new text end

new text begin (d) If the official is a member of the legislature, of the governing body of a
metropolitan governmental unit, or of a board, commission, or similar entity for which
the use of alternate voting members is not provided in law, the official must abstain from
debate or discussion of the matter and from any action or decision taken regarding the
matter. If the official has control of what matters come before the body for consideration,
the official must cede that control to the next individual in succession with regard to the
matter that presents the conflict of interest.
new text end

new text begin (e) If the official is an employee or a member of a board, commission, or entity for
which the use of alternate voting members is provided in law, the official must recuse
himself or herself from the matter and may not participate in discussion or debate of the
matter, or take part in any decision regarding the matter. In the case of a member, an
alternate member may take the official's place with respect to the matter. In the case of
an employee, the recused official's superior may assign the matter to another employee
who does not have a conflict of interest and that employee may participate in and vote on
the matter. If the recused official does not have a superior, the agency, commission, or
similar entity may designate another employee to serve in the recused official's place. In
the event that an alternate member or employee serves under this paragraph, the alternate
member or employee acts independently of the recused official.
new text end

new text begin (f) The official must file with the board within five business days of the abstention
or recusal a statement describing the vote or other action involved and the action taken
by the official.
new text end

Sec. 3.

Minnesota Statutes 2012, section 10A.08, is amended to read:

10A.08 REPRESENTATION DISCLOSURE.

deleted text begin A public deleted text end new text begin An new text end official who represents a client for a fee before an individual, board,
commission, or agency that has rulemaking authority in a hearing conducted under chapter
14, must disclose the official's participation in the action to the board within 14 days after
the appearance. If the deleted text begin public deleted text end official fails to disclose the participation deleted text begin within ten business
days after deleted text end new text begin by the date new text end the disclosure required by this section deleted text begin was deleted text end new text begin is new text end due, the board may
impose a late filing fee of deleted text begin $5 deleted text end new text begin $25 new text end per day, not to exceed deleted text begin $100 deleted text end new text begin $1,000 new text end , starting on the deleted text begin 11th
deleted text end day after the disclosure was due.

The board must send notice by certified mail to deleted text begin a public deleted text end new text begin an new text end official who fails to
disclose the participation within ten business days after the disclosure was due that the
deleted text begin public deleted text end official may be subject to a civil penalty for failure to disclose the participation.
deleted text begin A public deleted text end new text begin An new text end official who fails to disclose the participation within seven days after the
certified mail notice was sent by the board is subject to a civil penalty imposed by the
board of up to $1,000.

Sec. 4.

new text begin [10A.091] DISCLOSURE OF FINANCIAL INTERESTS.
new text end

new text begin Subdivision 1. new text end

new text begin Filing requirement. new text end

new text begin (a) Every individual filing for, or otherwise
being placed on the ballot for an elective state office that would make the individual a
public official must file a statement of financial interests not later than five days after the
closing of the period for filing an affidavit of candidacy for the office sought or five days
after otherwise being placed on the ballot.
new text end

new text begin (b) An elected official not included in paragraph (a) must file a statement of financial
interests not later than 30 days after taking office.
new text end

new text begin (c) An individual accepting appointment or employment as a public official whose
appointment requires the advice and consent of the senate must file a statement of financial
interests not later than 14 days after the date of appointment.
new text end

new text begin (d) An individual accepting appointment or employment as an official must file a
statement of financial interests not later than 30 days after the first date of service as
an official.
new text end

new text begin (e) A member of the Minnesota Racing Commission, the director of the Minnesota
Racing Commission, chief of security, medical officer, inspector of pari-mutuels, and
stewards employed or approved by the commission or persons who fulfill those duties
under contract must file a statement of financial interests not later than 30 days after
accepting or assuming duties.
new text end

new text begin Subd. 2. new text end

new text begin Statement of financial interests. new text end

new text begin (a) A statement of financial interests
required by this section must be in the form prescribed by the board. The statement must
include the information specified in this subdivision as of the date that triggered the
requirement to file the statement and for the preceding 12 months, except that in the case
of a new official, the statement must include the preceding 60 days. For all officials, only
current information is required by paragraph (a), clause (1). The statement must include:
new text end

new text begin (1) The official's name, address, telephone number, e-mail address, occupation, and
specific nature of business. In addition to the above information, the official may provide
the official's business or other alternate mailing address and telephone number for use on
the board's Web site and in other publications. If such alternate information is provided,
the board must use that information on its Web site and in other publications.
new text end

new text begin (2)(i) The name and address of each source of income of the official or the official's
spouse, other than a gift, aggregating more than $2,500 in value provided to, promised to,
or received by the official or the official's spouse, along with a description of the activity
engaged in to generate such income and of the relationship between the official or the
official's spouse and the source of income.
new text end

new text begin (ii) Sources of income include consideration received in exchange for services
whether provided as an employee, consultant, independent contractor, or in some other
capacity and whether characterized as wages, commissions, fees, or some other description.
new text end

new text begin (iii) Sources of income do not include compensation and per diem payments received
in the person's official capacity, payments from a relative, payments of court ordered
spousal maintenance or child support, or payments from Social Security, unemployment,
workers' compensation, or a pension plan.
new text end

new text begin (3) A listing of each business in which the official has direct or indirect investments
that are worth more than $2,500 along with a description of the nature of the business, the
relationship between the official and the business, and the nature of the investment.
new text end

new text begin (4)(i) A listing of each client, customer, or other source of business income of a
business, including a sole proprietorship, in which the official has direct or indirect
ownership interests of at least ten percent and the official's direct or indirect pro rata
share of gross receipts from that client, customer, or other source of business income is
more than $2,500.
new text end

new text begin (ii) The requirement of item (i) excludes retail customers of a business entity engaged
in retail sales of goods or services to the public generally or to a significant segment of
the public, if the retail customers of the business entity constitute the public generally or
a significant segment of the public and the amount of income received by the business
entity from the customer for the goods or services is not distinguishable from the amount
of income received from its other retail customers purchasing similar goods or services.
new text end

new text begin (iii) An official's pro rata share of the income from a client, customer, or other source
of business income of a business is calculated by multiplying the aggregate gross receipts
from that source over the previous 12 months by the percentage of direct and indirect
interest in the business that the official holds.
new text end

new text begin (iv) The provision of consulting, advisory, or similar services does not constitute
the sale of services to the public generally.
new text end

new text begin (v) Disclosure under this paragraph is not required if such disclosure would violate
this state's confidentiality laws or the rules of professional conduct related to attorneys and
clients or to medical professionals and patients.
new text end

new text begin (5) A listing of each business in which the official or the official's spouse is a
director, officer, partner, or trustee, or holds a similar position of management along
with a description of the relationship between the individual and the business, excluding
businesses listed in clause (2), item (i).
new text end

new text begin (6) A listing of each gift or gifts aggregating more than $100 in value, including
honoraria and the provision of travel and lodging or reimbursement for expenses by a
person not the official's employer provided to, received by, or promised to the official, the
official's spouse, or the official's minor child within the previous 12 months, excluding
gifts from relatives and gifts provided based on personal friendship, unless the official
has reason to believe that, under the circumstances, the gift was provided because of the
official position or employment of the official and not because of the personal friendship,
and also excluding gifts specified by the board in rules or advisory opinions. The listing
must include a description of the nature of the gift, the amount and the date on which the
gift was received, and a description of the relationship between the giver and the recipient.
new text end

new text begin (7) A listing of all real property within the state in which the official holds direct
or indirect interests valued at more than $2,500, except for a residential homestead or up
to 40 acres of an agricultural homestead as defined in section 273.124, subdivision 1,
paragraph (a). The listing must include the nature of the interest held and the street address
of residential real estate or the section, range, and township as well as the number of
acres of agricultural or other land.
new text end

new text begin (b) For the purposes of this section and section 10A.07, a relative means a person
related to the individual as father, mother, son, daughter, brother, sister, uncle, aunt, great
aunt, great uncle, first cousin, nephew, niece, spouse, grandfather, grandmother, grandson,
granddaughter, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law,
sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister,
half-brother, half-sister, and including the father, mother, grandfather, or grandmother of
the individual's spouse and the individual's fiance or fiancee.
new text end

new text begin (c) In determining whether a gift was provided based on personal friendship, the
official must consider the circumstances under which it was offered, such as:
new text end

new text begin (1) the history of the relationship between the person giving the gift and the recipient
of the gift, including previous exchange of gifts between these individuals;
new text end

new text begin (2) the circumstances under which the gift was given;
new text end

new text begin (3) whether to the actual knowledge of the official the person who gave the gift
personally paid for the gift, treated the gift as a business expense, or sought reimbursement
for the gift; and
new text end

new text begin (4) whether to the actual knowledge of the official, the person who gave the gift also
at the same time gave the same or similar gifts to other officials.
new text end

new text begin Nothing is this section or section 10A.07, expands the scope of gifts that may be
accepted under section 10A.071.
new text end

new text begin (d) When a source of money or other consideration is required to be reported under
this section, the disclosure statement must contain the name and address of the source of
money or consideration and a description of the business activity, if any, of each source; a
description of the relationship between the individual and the source; and a description
of the consideration given and received.
new text end

new text begin Subd. 3. new text end

new text begin Review and recertification of filed statement. new text end

new text begin (a) Each individual who is
required to file a statement of financial interests must review the statement annually. The
review must include the previous 12 months ending on March 31 of the current year and
must be completed no later than April 15.
new text end

new text begin (b) At the time of the review, the individual must make such additions or deletions
to the statement of financial interests as necessary so that the statement includes all
information required by this section.
new text end

new text begin (c) Upon completion of the review and the making of any required changes, the
individual must certify the statement as true in accordance with the requirement of section
10A.025, subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Method of filing. new text end

new text begin Original statements of financial interests and
recertifications must be completed using an online electronic system established by the
board unless the official is granted a waiver from the electronic filing requirement. The
board shall grant such waivers upon written request and for good cause.
new text end

new text begin Subd. 5. new text end

new text begin Appointments requiring confirmation by a body of the legislature. new text end

new text begin If
the appointment of an official is subject to confirmation by a body of the legislature,
the board must notify the presiding officer of the body that will approve or disapprove
the appointment of the name of an individual who has been appointed, the date of the
appointment, and the date on which the official filed a statement of financial interests. The
board must also provide the presiding officer with a copy of the statement of financial
interests.
new text end

new text begin Subd. 6. new text end

new text begin Place of filing. new text end

new text begin A public official required to file a statement under this
section must file it with the board. A local official of a metropolitan governmental unit
must file the statement with the governing body of the official's political subdivision. If an
official position is classified as both a public official and as a local official of a metropolitan
governmental unit under this chapter, the official must file the statement with the board.
new text end

new text begin Subd. 7. new text end

new text begin Late filing. new text end

new text begin If an individual fails to file a statement of financial interests
required by this section the board may impose a late filing fee of $25 per day, not to
exceed $1,000, commencing on the day after the statement was due. The board must send
notice by certified mail to any individual who fails to file a statement within ten business
days after the statement was due that the individual may be subject to a civil penalty for
failure to file a statement. An individual who fails to file a statement within seven days
after the certified mail notice was sent by the board is subject to a civil penalty imposed by
the board up to $1,000.
new text end

new text begin Subd. 8. new text end

new text begin Failure to file; suspension. new text end

new text begin An official, except a member of the legislature
or a constitutional officer, who is required to file a statement of financial interests and who
fails to do so by the prescribed deadline may be suspended without pay by the board in the
manner prescribed in the contested case procedures in chapter 14.
new text end

new text begin Subd. 9. new text end

new text begin Penalties. new text end

new text begin The board may impose a civil penalty of up to $3,000 for
knowingly violating subdivisions 1 to 4.
new text end

new text begin Subd. 10. new text end

new text begin Notice to board of individuals required to disclose financial interests.
new text end

new text begin The notices specified in this subdivision must be provided to the board.
new text end

new text begin (1) The secretary of state or the appropriate county auditor, upon receiving an
affidavit of candidacy or petition to appear on the ballot from an individual required by
this section to file a statement of financial interests, must provide a copy of the affidavit of
candidacy or petition to appear on the ballot.
new text end

new text begin (2) Anyone who nominates or employs an official required by this section to file
a statement of financial interests, must notify the board within two business days of the
name, mailing address, telephone number, and e-mail address of the individual required to
file a statement and the date of the nomination or employment.
new text end

new text begin (3) Any political subdivision that appoints a member of a water management
organization or watershed district must notify the board within five business days of the
name, mailing address, telephone number, and e-mail address of the appointed individual
and of the date of the appointment.
new text end

new text begin Subd. 11. new text end

new text begin Identification of officials. new text end

new text begin (a) Annually, each metropolitan governmental
unit must determine which positions within the metropolitan governmental unit constitute
its local officials. Not later than February 15 of each year, the metropolitan governmental
unit must certify to the board the list of its local official positions along with the name
and official address, official e-mail address, and official telephone number of each of its
local officials.
new text end

new text begin (b) Not later than February 15 of each year, each agency, board, political subdivision,
or other entity on which one or more public officials serves or is employed must certify
to the board the name, official address, official e-mail addresses, and official telephone
number of each of its officials.
new text end

new text begin Subd. 12. new text end

new text begin Substitutes for officials. new text end

new text begin An individual authorized to act in place of an
official is an official subject to this section. Upon written request, the board may exempt
substitute officials from the requirement to file and maintain a statement of financial
interests.
new text end

new text begin Subd. 13. new text end

new text begin Data classification of statements of financial interests. new text end

new text begin Upon written
request, and for good cause shown, the board may classify an official's mailing address,
telephone number, and e-mail address as private data. This classification does not extend
to other information disclosed under the Minnesota Public Integrity Law.
new text end

Sec. 5.

Minnesota Statutes 2012, section 13.607, is amended to read:

13.607 deleted text begin ETHICS deleted text end new text begin PUBLIC INTEGRITY, CAMPAIGN FINANCE, new text end AND
ELECTION DATA CODED ELSEWHERE.

Subdivision 1.

Scope.

The sections referred to in this section are codified outside
this chapter. Those sections classify campaign, deleted text begin ethics deleted text end new text begin public integrity new text end , and election data as
other than public, place restrictions on access to government data, or involve data sharing.

Subd. 2.

Campaign Finance and Public Disclosure Board information.

Disclosure by the Campaign Finance and Public Disclosure Board of information about a
complaint or investigation is governed by section 10A.02, subdivision 11.

Subd. 3.

deleted text begin Ethical practices deleted text end new text begin Campaign Finance and Public Disclosure Board
new text end investigation data.

The record of certain investigations conducted under chapter 10A
is classified, and disposition of certain information is governed, by section 10A.02,
subdivision 11a.

Subd. 4.

Campaign Finance and Public Disclosure Board opinions.

A request
for a Campaign Finance and Public Disclosure Board advisory opinion and the opinion
itself are classified under section 10A.02, subdivision 12.

Subd. 5.

Statements of deleted text begin economic interest deleted text end new text begin financial interests new text end .

Disclosure of
statements of deleted text begin economic interest deleted text end new text begin financial interests new text end filed new text begin with the Campaign Finance and
Public Disclosure Board new text end by new text begin public and new text end local officials is governed by section deleted text begin 10A.09,
subdivision 6a deleted text end new text begin 10A.091, subdivision 13 new text end .

Subd. 5a.

Campaign reports.

Certain reports filed with the Campaign Finance and
Public Disclosure Board are classified under section 10A.20.

Subd. 6.

Registered voter lists.

Access to registered voter lists is governed by
section 201.091.

Subd. 7.

Absentee ballots.

Disclosure of names of voters submitting absentee
ballots is governed by section 203B.12, subdivision 7.

Subd. 8.

Candidates for office; address of residence.

The address of residence of
certain candidates for office is classified as provided in section 204B.06, subdivision 1b.

Sec. 6. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 10A.01, subdivision 5; and 10A.09,
subdivisions 1, 2, 3, 5, 6, 6a, 7, and 8, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 4501.0200; 4501.0400; 4505.0010; 4505.0100;
4505.0700; and 4505.0900, new text end new text begin are repealed.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2012, section 11A.075, is amended to read:

11A.075 DISCLOSURE OF EXPENSE REIMBURSEMENT.

(a) A member or employee of the state board must annually disclose expenses paid
for or reimbursed by: (1) each investment advisor, consultant, or outside money manager
under contract to the state board; (2) each investment advisor, consultant, or outside
money manager that has bid on a contract offered by the state board during that year; and
(3) each business, including officers or employees of the business, in which the state board
has invested money under the board's control during the annual reporting period. The
disclosure requirement of this paragraph does not apply to expenses or reimbursements
from an investment advisor, consultant, money manager or business if the board member
or employee received less than $50 during the annual reporting period from that person
or entity.

(b) For purposes of this section, expenses include payments or reimbursements for
meals, entertainment, transportation, lodging, and seminars.

(c) The disclosure required by this section must be filed with the Campaign Finance
and Public Disclosure Board by April 15 each year. Each disclosure report must cover
the previous calendar year. The statement must be on a form provided by the Campaign
Finance and Public Disclosure Board. An individual who fails to file the form required
by this section or who files false information, is subject to penalties specified in sections
deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end and 10A.025, subdivision 2.

Sec. 2.

Minnesota Statutes 2012, section 11A.08, subdivision 6, is amended to read:

Subd. 6.

Conflict of interest; deleted text begin economic interest deleted text end statement new text begin of financial interests new text end .

No member of the council may participate in deliberations or vote on any matter before
the council which will or is likely to result in direct, measurable economic gain to the
member. Additionally, no member of the council appointed by the state board may
participate in deliberations or vote on any matter before the council which will or is likely
to result in direct, measurable economic gain to that member's employer. Members of the
council shall file with the Campaign Finance and Public Disclosure Board deleted text begin an economic
interest deleted text end new text begin a new text end statement new text begin of financial interests new text end in a manner as prescribed by section deleted text begin 10A.09,
subdivisions 5 and 6 deleted text end new text begin 10A.091 new text end .

Sec. 3.

Minnesota Statutes 2012, section 13.607, subdivision 5, is amended to read:

Subd. 5.

Statements of deleted text begin economic interest deleted text end new text begin financial interests new text end .

Disclosure of
statements of deleted text begin economic interest deleted text end new text begin financial interests new text end filed by local officials is governed by
section deleted text begin deleted text begin 10A.09 deleted text end , subdivision 6a deleted text end new text begin 10A.091 new text end .

Sec. 4.

Minnesota Statutes 2012, section 15.066, subdivision 2, is amended to read:

Subd. 2.

Procedure.

In all appointments to state agencies which require the advice
and consent of the senate, the following procedure shall apply:

deleted text begin (a) deleted text end new text begin (1) new text end the appointing authority shall provide to the president of the senate a letter of
appointment which shall include the position title to which the appointment is being made;
the name, street address, city and county of the appointee; and the term of the appointment;

deleted text begin (b) deleted text end new text begin (2) new text end for those positions for which a statement of deleted text begin economic interest deleted text end new text begin financial
interests new text end is required to be filed by section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end , the appointing authority shall
give the notice to the Campaign Finance and Public Disclosure Board required by section
deleted text begin 10A.09, subdivision 2 deleted text end new text begin 10A.091, subdivision 10 new text end , at the time the letter of appointment
is directed to the president of the senate;

deleted text begin (c) deleted text end new text begin (3) new text end if the appointment is subject to the open appointments program provided by
section 15.0597, the appointing authority shall provide the senate with a copy of the
application provided by section 15.0597, at the time the letter of appointment is directed to
the president of the senate; and

deleted text begin (d) deleted text end new text begin (4) new text end the appointment shall be effective and the appointee may commence to
exercise the duties of the office upon the receipt of the letter of appointment by the
president of the senate.

Sec. 5.

Minnesota Statutes 2012, section 32C.01, subdivision 8, is amended to read:

Subd. 8.

deleted text begin Economic interest deleted text end Statements new text begin of financial interests new text end .

Directors and
officers of the authority are public officials for the purpose of section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end ,
and must file statements of deleted text begin economic interest deleted text end new text begin financial interests new text end with the Campaign
Finance and Public Disclosure Board.

Sec. 6.

Minnesota Statutes 2012, section 85A.01, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Statement deleted text end new text begin Statements new text end of deleted text begin economic interest deleted text end new text begin financial interests new text end .

Members
of the board are not required to file a statement of deleted text begin economic interest deleted text end new text begin financial interests new text end with
the state Campaign Finance and Public Disclosure Board under section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end .

Sec. 7.

Minnesota Statutes 2012, section 85B.02, subdivision 8, is amended to read:

Subd. 8.

deleted text begin Economic interest deleted text end Statements new text begin of financial interests new text end .

Directors and
officers of the corporation are public officials for the purpose of section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end ,
and must file statements of deleted text begin economic interest deleted text end new text begin financial interests new text end with the state Campaign
Finance and Public Disclosure Board.

Sec. 8.

Minnesota Statutes 2012, section 116O.03, subdivision 11, is amended to read:

Subd. 11.

Statements of deleted text begin economic interest deleted text end new text begin financial interests new text end .

Directors and
officers of the corporation are public officials for the purpose of section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end ,
and must file statements of deleted text begin economic interest deleted text end new text begin financial interests new text end with the Campaign
Finance and Public Disclosure Board.

Sec. 9.

Minnesota Statutes 2012, section 216A.035, is amended to read:

216A.035 CONFLICT OF INTEREST.

(a) No person, while a member of the Public Utilities Commission, while acting as
executive secretary of the commission, or while employed in a professional capacity
by the commission, shall receive any income, other than dividends or other earnings
from a mutual fund or trust if these earnings do not constitute a significant portion of
the person's income, directly or indirectly from any public utility or other organization
subject to regulation by the commission.

(b) No person is eligible to be appointed as a member of the commission if the
person has been employed with an entity, or an affiliated company of an entity, that is
subject to rate regulation by the commission within one year from the date when the
person's term on the commission will begin.

(c) No person who is an employee of the Department of Commerce shall participate
in any manner in any decision or action of the commission where that person has a direct
or indirect financial interest. Each commissioner or employee of the department who is in
the general professional, supervisory, or technical units established in section 179A.10 or
who is a professional, supervisory, or technical employee defined as confidential in section
179A.03, subdivision 4, or who is a management classification employee and whose
duties are related to public utility, telephone company, or telecommunications company
regulation shall report to the Campaign Finance and Public Disclosure Board annually
before April 15 any interest in an industry or business regulated by the commission. Each
commissioner shall file a statement of deleted text begin economic interest deleted text end new text begin financial interests new text end as required
by section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end with the Campaign Finance and Public Disclosure Board
and the Public Utilities Commission before taking office. The statement of deleted text begin economic
interest deleted text end new text begin financial interests new text end must state any interest that the commissioner has in an industry
or business regulated by the commission.

(d) A professional employee of the commission or department must immediately
disclose to the commission or to the commissioner of the department, respectively, any
communication, direct or indirect, with a person who is a party to a pending proceeding
before the commission regarding future benefits, compensation, or employment to be
received from that person.

Sec. 10.

Minnesota Statutes 2012, section 356A.06, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Economic interest statement deleted text end new text begin Statements of financial interests new text end .

(a) Each
member of the governing board of a covered pension plan and the chief administrative
officer of the plan shall file with the plan a statement of deleted text begin economic interest deleted text end new text begin financial interests new text end .

(b) For a covered pension plan other than a plan specified in paragraph (c), the
statement must contain the information required by section deleted text begin 10A.09, subdivision 5 deleted text end new text begin 10A.091 new text end ,
and any other information that the fiduciary or the governing board of the plan determines
is necessary to disclose a reasonably foreseeable potential or actual conflict of interest.

(c) For a covered pension plan governed by sections 69.771 to 69.776 or a covered
pension plan governed by section 69.77 with assets under $8,000,000, the statement
must contain the following:

(1) the person's principal occupation and principal place of business;

(2) whether or not the person has an ownership of or interest of ten percent or greater
in an investment security brokerage business, a real estate sales business, an insurance
agency, a bank, a savings and loan, or another financial institution; and

(3) any relationship or financial arrangement that can reasonably be expected to
give rise to a conflict of interest.

(d) The statement must be filed annually with the chief administrative officer of
the plan and be available for public inspection during regular office hours at the office
of the pension plan.

(e) A disclosure form meeting the requirements of the federal Investment Advisers
Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and
filed with the State Board of Investment or the pension plan meets the requirements of
this subdivision.

(f) The chief administrative officer of each covered pension plan, by January 15,
annually, shall transmit a certified listing of all individuals who have filed statements
of deleted text begin economic interest deleted text end new text begin financial interests new text end with the plan under this subdivision during the
preceding 12 months and the address of the office referenced in paragraph (d) to the
Campaign Finance and Public Disclosure Board.

Sec. 11.

Minnesota Statutes 2012, section 383B.053, subdivision 1, is amended to read:

Subdivision 1.

Officials required to file; deadlines.

Every candidate for county
office, every elected official of Hennepin County, every candidate for office and every
elected official of a home rule charter city or statutory city located wholly within Hennepin
County and having a population of 75,000 or more, and every candidate for school board
and every elected official in Special School District No. 1, Minneapolis shall file statements
of deleted text begin economic interest deleted text end new text begin financial interests new text end as required by this section with the filing officer.
A candidate shall file an original statement within 14 days of the filing of an affidavit or
petition to appear on the ballot. Every individual required to file a statement shall file a
supplementary statement on April 15 of each year in which the individual remains a
candidate or elected official. An official required to file a statement of deleted text begin economic interest
deleted text end new text begin financial interests new text end under section deleted text begin 10A.09 deleted text end new text begin 10A.091 new text end is not required to comply with this section.