SF 288

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/02/2023 09:19am

A bill for an act
relating to campaign finance; prohibiting certain political activities by
foreign-influenced corporations; requiring a certification of compliance; prohibiting
candidates from accepting certain contributions; amending Minnesota Statutes
2022, sections 10A.27, subdivision 11; 211B.15, subdivisions 1, 7, 7b, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 10A.27, subdivision 11, is amended to read:

Subd. 11.

Contributions from certain types of contributors.

new text begin (a) new text end A candidate must not
permit the candidate's principal campaign committee to accept a contribution from a political
committee, political fund, lobbyist, or association not registered with the board if the
contribution will cause the aggregate contributions from those types of contributors during
an election cycle segment to exceed an amount equal to 20 percent of the election cycle
segment expenditure limits for the office sought by the candidate, provided that the 20
percent limit must be rounded to the nearest $100.

new text begin (b) A candidate must not permit the candidate's principal campaign committee to accept
a contribution that is prohibited by section 211B.15.
new text end

Sec. 2.

Minnesota Statutes 2022, section 211B.15, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

new text begin (a) new text end For purposes of this section, new text begin the terms defined in this
subdivision have the meanings given. Unless otherwise provided, the definitions in section
10A.01 also apply to this section.
new text end

new text begin (b) "Chief executive officer" means the highest-ranking officer or decision-making
individual with authority over a corporation's affairs.
new text end

new text begin (c) new text end "Corporation" means:

(1) a corporation organized for profit that does business in this state;

(2) a nonprofit corporation that carries out activities in this state; or

(3) a limited liability company formed under chapter 322C, or under similar laws of
another state, that does business in this state.

new text begin (d) "Foreign-influenced corporation" means a corporation for which at least one of the
following conditions is met:
new text end

new text begin (1) a single foreign owner holds, owns, controls, or otherwise has direct or indirect
beneficial ownership of one percent or more of the total equity, outstanding voting shares,
membership units, or other applicable ownership interests of the corporation;
new text end

new text begin (2) two or more foreign owners in aggregate hold, own, control, or otherwise have direct
or indirect beneficial ownership of five percent or more of the total equity, outstanding
voting shares, membership units, or other applicable ownership interests of the corporation;
or
new text end

new text begin (3) a foreign owner participates directly or indirectly in the corporation's decision-making
process with respect to the corporation's political activities in the United States.
new text end

new text begin (e) "Foreign investor" means a person or entity that:
new text end

new text begin (1) holds, owns, controls, or otherwise has direct or indirect beneficial ownership of
equity, outstanding voting shares, membership units, or otherwise applicable ownership
interests of a corporation; and
new text end

new text begin (2) is a government of a foreign country; a political party organized in a foreign country;
a partnership, association, corporation, organization, or other combination of persons
organized under the laws of or having its principal place of business in a foreign country;
or an individual who is not a citizen or national of the United States and who is not lawfully
admitted for permanent residence in the United States.
new text end

new text begin (f) "Foreign owner" means:
new text end

new text begin (1) a foreign investor; or
new text end

new text begin (2) a corporation in which a foreign investor holds, owns, controls, or otherwise has
directly or indirectly acquired beneficial ownership of equity or voting shares in an amount
that is equal to or greater than 50 percent of the total equity or outstanding voting shares.
new text end

Sec. 3.

Minnesota Statutes 2022, section 211B.15, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Foreign-influenced corporations. new text end

new text begin (a) Notwithstanding subdivisions 3 and
4, a foreign-influenced corporation must not:
new text end

new text begin (1) make an expenditure, or offer or agree to make an expenditure, to promote or defeat
the candidacy of an individual for nomination, election, or appointment to a public office;
new text end

new text begin (2) make contributions or expenditures to promote or defeat a ballot question, to qualify
a question for placement on the ballot, or to express its views on issues of public concern;
new text end

new text begin (3) make a contribution to a candidate for nomination, election, or appointment to a
public office or to a candidate's principal campaign committee;
new text end

new text begin (4) make a contribution to a political committee, political fund, or political party unit;
or
new text end

new text begin (5) take any action to publicly endorse or oppose a candidate for nomination, election,
or appointment to a public office, or to endorse or oppose a ballot question or other issue
of public concern.
new text end

new text begin (b) Notwithstanding subdivisions 8 to 11, a foreign-influenced corporation is prohibited
from engaging in the activities otherwise authorized by those subdivisions.
new text end

Sec. 4.

Minnesota Statutes 2022, section 211B.15, is amended by adding a subdivision to
read:

new text begin Subd. 4b. new text end

new text begin Certification of compliance with subdivision 4a. new text end

new text begin A corporation that makes
a contribution or expenditure authorized by subdivision 3 or 4 must, within seven business
days after the contribution or expenditure is made, submit a certification to the Campaign
Finance and Public Disclosure Board that it was not a foreign-influenced corporation as of
the date the contribution or expenditure was made. The certification must be signed by the
corporation's chief executive officer after reasonable inquiry, under penalty of perjury. If
the activity requiring certification was a contribution to an independent expenditure
committee, the corporation must additionally provide a copy of the certification to that
committee.
new text end

Sec. 5.

Minnesota Statutes 2022, section 211B.15, subdivision 7, is amended to read:

Subd. 7.

Penalty for corporations.

(a) A corporation that violates this section is subject
to a civil penalty of up to ten times the amount of the violation, but in no case more than
$10,000, imposed by the Campaign Finance and Public Disclosure Board under chapter
10A or imposed by the Office of Administrative Hearings under this chapter.

(b) Knowingly violating this section is a crime. A corporation convicted of knowingly
violating this section is subject to a fine not greater than $40,000. A convicted domestic
corporation may be dissolved as well as fined. If a foreign new text begin , foreign-influenced, new text end or nonresident
corporation is convicted, in addition to being fined, its right to do business in this state may
be declared forfeited.

Sec. 6.

Minnesota Statutes 2022, section 211B.15, subdivision 7b, is amended to read:

Subd. 7b.

Knowing violations.

An individual or a corporation knowingly violates this
section if, at the time of a transaction, the individual or the corporation knew:

(1) that the transaction causing the violation constituted a contribution under chapter
10A, 211A, or 383B; and

(2) that the contributor was a corporation subject to the prohibitions of subdivision 2 new text begin or
4a new text end .

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2023, and applies to contributions, expenditures, and other
applicable activities occurring on or after that date.
new text end