SF 3212

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to ethics in government; increasing public's right to know how lobbyists
are influencing the legislative process; requiring disclosure of economic interests
of independent contractors and consultants; changing certain definitions;
requiring disclosure of contributions to and from conduit funds; prohibiting
former legislators, constitutional officers, and agency heads from lobbying for
legislative or administrative action for two years after leaving office; requiring
disclosure of the costs of lobbying; requiring certain reports of lobbying activity;
advancing the date for filing spending limit agreements; prohibiting legislators
from serving in certain positions in the executive branch for two years after
leaving office; prohibiting corporations from providing administrative assistance
to political committees and political funds; extending deadline for return of
contributions; amending Minnesota Statutes 2004, sections 10A.01, subdivision
11, by adding a subdivision; 10A.04, subdivision 4; 10A.14, subdivisions 1, 2;
10A.15, subdivisions 1, 2, 3, 5; 10A.17, subdivision 1; 10A.20, subdivisions 1,
2, 3, by adding a subdivision; 10A.322, subdivision 1; 43A.38, by adding a
subdivision; 211B.15, subdivision 16; Minnesota Statutes 2005 Supplement,
sections 10A.01, subdivision 5; 10A.04, subdivision 6; proposing coding for new
law in Minnesota Statutes, chapter 10A; repealing Minnesota Statutes 2004,
section 211B.15, subdivision 17.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 10A.01, subdivision 5,
is amended to read:

Subd. 5.

Associated business.

new text begin (a) new text end "Associated business" means an association,
corporation, partnership, limited liability company, limited liability partnership, or other
organized legal entity from which the individual receives compensation in excess of
deleted text begin $50 deleted text end new text begin $500 in a year new text end , except for actual and reasonable expenses, deleted text begin in any month deleted text end as a director,
officer, owner, member, partner, employer or employee, or whose securities the individual
holds worth $2,500 or more at fair market value.

new text begin (b) "Associated business" also means a lobbyist, principal, or interested person
by whom the individual is compensated in excess of $500 in a year, except for actual
and reasonable expenses, for providing services to the lobbyist, principal, or interested
person as an independent contractor or consultant. If an individual is compensated by
an association for providing services to a lobbyist, principal, or interested person as an
independent contractor or consultant, "associated business" includes both the association
that pays the compensation and the lobbyist, principal, or interested person to whom
the services are provided.
new text end

new text begin (c) "Interested person" means a person or a representative of a person or association
that has a direct financial interest in a decision that the individual receiving the
compensation is authorized to make as a public or local official or will be authorized to
make upon becoming a public or local official. To be "direct," the financial interest of
the person or association paying the compensation to the individual must be of greater
consequence to the payer than the general interest of other residents or taxpayers of the
individual's governmental unit.
new text end

Sec. 2.

Minnesota Statutes 2004, section 10A.01, is amended by adding a subdivision
to read:

new text begin Subd. 10d. new text end

new text begin Conduit fund. new text end

new text begin "Conduit fund" means money, a negotiable instrument,
or a donation in kind collected by an association from its employees and contributed to a
principal campaign committee, political committee, political fund, or party unit only as
directed by the employee from whom the money was collected.
new text end

Sec. 3.

Minnesota Statutes 2004, section 10A.01, subdivision 11, is amended to read:

Subd. 11.

Contribution.

(a) "Contribution" means money, a negotiable instrument,
or a donation in kind that is given to a political committee, political fund, new text begin conduit fund,
new text end principal campaign committee, or party unit.

(b) "Contribution" includes a loan or advance of credit to a political committee,
political fund, principal campaign committee, or party unit, if the loan or advance of credit
is: (1) forgiven; or (2) repaid by an individual or an association other than the political
committee, political fund, principal campaign committee, or party unit to which the loan
or advance of credit was made. If an advance of credit or a loan is forgiven or repaid as
provided in this paragraph, it is a contribution in the year in which the loan or advance
of credit was made.

(c) "Contribution" does not include services provided without compensation by an
individual volunteering personal time on behalf of a candidate, ballot question, political
committee, political fund, principal campaign committee, or party unit, or the publishing
or broadcasting of news items or editorial comments by the news media.

Sec. 4.

new text begin [10A.035] LOBBYING RESTRICTION.
new text end

new text begin For two years after leaving one of the offices or positions listed in this section, an
individual may not act as a lobbyist who attempts to influence legislative or administrative
action:
new text end

new text begin (1) member of the legislature;
new text end

new text begin (2) constitutional officer; or
new text end

new text begin (3) commissioner, deputy commissioner, or full-time head of any state or
metropolitan department, agency, board, or commission.
new text end

Sec. 5.

Minnesota Statutes 2004, 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.

(b) new text begin A lobbyist must report a general description of the subject or subjects on which
the lobbyist lobbied on behalf of each principal.
new text end

new text begin (c) A lobbyist must report the unitemized total amount of all income from the
principal for lobbying activities on behalf of the principal. The total must include amounts
paid to cover the lobbyist's salary and administrative expenses. The report must include
any payments to the lobbyist by any other person for lobbying activities on behalf of
the principal.
new text end

new text begin (d) new text end A lobbyist must report 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 begin (c) deleted text end new text begin (e) new text end A lobbyist must report the amount and nature of each gift, item, or benefit deleted text begin ,
excluding contributions to a candidate, deleted text end equal in value to $5 or more, new text begin and each contribution
to a candidate equal in value to $50 or more, new text end given or paid to any official, as defined in
section 10A.071, subdivision 1, by the lobbyist or deleted text begin an employer or employee deleted text end new text begin at the direction
new text end of the lobbyist. The list must include the name and address of each official to whom the
gift, item, deleted text begin or deleted text end benefit new text begin , or contribution new text end was given or paid and the date it was given or paid.

deleted text begin (d) deleted text end new text begin (f) 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) On the report due June 15, the lobbyist must provide a general description of the
subjects lobbied in the previous 12 months. deleted text end

new text begin (g) A lobbyist must report the amount and date of each contribution given by the
lobbyist to a party organization within a house of the legislature.
new text end

Sec. 6.

Minnesota Statutes 2005 Supplement, 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) The principal must report the total amount deleted text begin , rounded to the nearest $20,000, deleted text end
spent by the principal during the preceding calendar year to influence legislative action,
new text begin the total amount spent by the principal during the preceding calendar year to influence
new text end administrative action, and new text begin the total amount spent by the principal during the preceding
calendar year to influence new text end the official action of metropolitan governmental units.

(c) The principal must report under this subdivision a total amount that includes:

(1) all direct payments by the principal to lobbyists in this state;

(2) all expenditures for advertising, mailing, research, analysis, compilation and
dissemination of information, and public relations campaigns related to legislative action,
administrative action, or the official action of metropolitan governmental units in this
state; and

(3) all salaries and administrative expenses attributable to activities of the principal
new text begin or a lobbyist engaged by the principal new text end relating to efforts new text begin on behalf of the principal new text end to
influence legislative action, administrative action, or the official action of metropolitan
governmental units in this state.

Sec. 7.

new text begin [10A.125] CONDUIT FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Commingling prohibited. new text end

new text begin The contents of a conduit fund may not
be commingled with other funds or with the personal funds of an officer or member of
the fund.
new text end

new text begin Subd. 2. new text end

new text begin Treasurer. new text end

new text begin An association that has a conduit fund must elect or appoint a
treasurer of the fund.
new text end

new text begin Subd. 3. new text end

new text begin Treasurer vacancy. new text end

new text begin A conduit fund may not accept a contribution or
make an expenditure or contribution from the fund while the office of treasurer of the
fund is vacant.
new text end

new text begin Subd. 4. new text end

new text begin Penalty. new text end

new text begin A person who knowingly violates this section is subject to a civil
penalty imposed by the board of up to $1,000.
new text end

Sec. 8.

Minnesota Statutes 2004, section 10A.14, subdivision 1, is amended to read:

Subdivision 1.

First registration.

The treasurer of a political committee, political
fund, new text begin conduit fund, new text end principal campaign committee, or party unit must register with the
board by filing a statement of organization no later than 14 days after the committee,
fund, or party unit has made a contribution, received contributions, or made expenditures
in excess of $100.

Sec. 9.

Minnesota Statutes 2004, section 10A.14, subdivision 2, is amended to read:

Subd. 2.

Form.

The statement of organization must include:

(1) the name and address of the committee, fund, or party unit;

(2) the name and address of the chair of a political committee, principal campaign
committee, or party unit;

(3) the name and address of any supporting association of a political fund new text begin or conduit
fund new text end ;

(4) the name and address of the treasurer and any deputy treasurers;

(5) a listing of all depositories or safety deposit boxes used; and

(6) for the state committee of a political party only, a list of its party units.

Sec. 10.

Minnesota Statutes 2004, section 10A.15, subdivision 1, is amended to read:

Subdivision 1.

Anonymous contributions.

A political committee, political fund,
new text begin conduit fund, new text end principal campaign committee, or party unit may not retain an anonymous
contribution in excess of $20, but must forward it to the board for deposit in the general
account of the state elections campaign fund.

Sec. 11.

Minnesota Statutes 2004, section 10A.15, subdivision 2, is amended to read:

Subd. 2.

Source; amount; date.

An individual who receives a contribution in
excess of $20 for a political committee, political fund, new text begin conduit fund, new text end principal campaign
committee, or party unit must, on demand of the treasurer, inform the treasurer of the
name and, if known, the address of the source of the contribution, the amount of the
contribution, and the date it was received.

Sec. 12.

Minnesota Statutes 2004, section 10A.15, subdivision 3, is amended to read:

Subd. 3.

Deposit.

All contributions received by or on behalf of a candidate, principal
campaign committee, political committee, political fund, new text begin conduit fund, new text end or party unit must
be deposited in an account designated "Campaign Fund of ..... (name of candidate,
committee, fund, new text begin conduit fund, new text end or party unit)." All contributions must be deposited
promptly upon receipt and, except for contributions received during the last three days of
a reporting period as described in section 10A.20, must be deposited during the reporting
period in which they were received. A contribution received during the last three days of
a reporting period must be deposited within 72 hours after receipt and must be reported
as received during the reporting period whether or not deposited within that period. A
candidate, principal campaign committee, political committee, political fund, new text begin conduit
fund, new text end or party unit may refuse to accept a contribution. A deposited contribution may be
returned to the contributor within deleted text begin 60 deleted text end new text begin 90 new text end days after deposit. A contribution deposited and
not returned within deleted text begin 60 deleted text end new text begin 90 new text end days after that deposit must be reported as accepted.

Sec. 13.

Minnesota Statutes 2004, section 10A.15, subdivision 5, is amended to read:

Subd. 5.

Registration number on checks.

A contribution made to a candidate by a
lobbyist, political committee, political fund, new text begin conduit fund, new text end or party unit must show the
name of the lobbyist, political committee, political fund, new text begin conduit fund, new text end or party unit and
the number under which it is registered with the board.

Sec. 14.

Minnesota Statutes 2004, section 10A.17, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

A political committee, political fund, new text begin conduit fund,
new text end principal campaign committee, or party unit may not expend money unless the expenditure
is authorized by the treasurer or deputy treasurer of that committee, fund, or party unit.

Sec. 15.

Minnesota Statutes 2004, section 10A.20, subdivision 1, is amended to read:

Subdivision 1.

First filing; duration.

The treasurer of a political committee,
political fund, new text begin conduit fund, new text end principal campaign committee, or party unit must begin to
file the reports required by this section in the first year it receives contributions or makes
expenditures in excess of $100 and must continue to file until the committee, fund, or
party unit is terminated.

Sec. 16.

Minnesota Statutes 2004, section 10A.20, subdivision 2, is amended to read:

Subd. 2.

Time for filing.

(a) The reports must be filed with the board on or before
January 31 of each year and additional reports must be filed as required and in accordance
with paragraphs (b) and (c).

(b) In each year in which the name of the candidate is on the ballot, the report of
the principal campaign committee must be filed 15 days before a primary and ten days
before a general election, seven days before a special primary and a special election,
and ten days after a special election cycle.

(c) In each general election year, a political committee, political fund, new text begin conduit fund,
new text end or party unit must file reports 15 days before a primary and ten days before a general
election.

Sec. 17.

Minnesota Statutes 2004, section 10A.20, subdivision 3, is amended to read:

Subd. 3.

Contents of report new text begin ; other than conduit funds new text end .

(a) The report new text begin by an
entity other than a conduit fund new text end must disclose the amount of liquid assets on hand at the
beginning of the reporting period.

(b) The report must disclose the name, address, and employer, or occupation if
self-employed, of each individual or association that has made one or more contributions
to the reporting entity, including the purchase of tickets for a fund-raising effort, that in
aggregate within the year exceed $100 for legislative or statewide candidates or ballot
questions, together with the amount and date of each contribution, and the aggregate
amount of contributions within the year from each source so disclosed. A donation in kind
must be disclosed at its fair market value. An approved expenditure must be listed as a
donation in kind. A donation in kind is considered consumed in the reporting period
in which it is received. The names of contributors must be listed in alphabetical order.
Contributions from the same contributor must be listed under the same name. When a
contribution received from a contributor in a reporting period is added to previously
reported unitemized contributions from the same contributor and the aggregate exceeds
the disclosure threshold of this paragraph, the name, address, and employer, or occupation
if self-employed, of the contributor must then be listed on the report.

(c) The report must disclose the sum of contributions to the reporting entity new text begin and the
sum of all contributions received through each conduit fund and through all conduit funds
new text end during the reporting period. new text begin The report must include the name and registration number of
each conduit fund from which a contribution was received.
new text end

(d) The report must disclose each loan made or received by the reporting entity
within the year in aggregate in excess of $100, continuously reported until repaid or
forgiven, together with the name, address, occupation, and principal place of business,
if any, of the lender and any endorser and the date and amount of the loan. If a loan
made to the principal campaign committee of a candidate is forgiven or is repaid by an
entity other than that principal campaign committee, it must be reported as a contribution
for the year in which the loan was made.

(e) The report must disclose each receipt over $100 during the reporting period not
otherwise listed under paragraphs (b) to (d).

(f) The report must disclose the sum of all receipts of the reporting entity during
the reporting period.

(g) The report must disclose the name and address of each individual or association
to whom aggregate expenditures, including approved expenditures, have been made by
or on behalf of the reporting entity within the year in excess of $100, together with the
amount, date, and purpose of each expenditure and the name and address of, and office
sought by, each candidate on whose behalf the expenditure was made, identification of the
ballot question that the expenditure was intended to promote or defeat, and in the case
of independent expenditures made in opposition to a candidate, the candidate's name,
address, and office sought. A reporting entity making an expenditure on behalf of more
than one candidate for state or legislative office must allocate the expenditure among the
candidates on a reasonable cost basis and report the allocation for each candidate.

(h) The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

(i) The report must disclose the amount and nature of an advance of credit incurred
by the reporting entity, continuously reported until paid or forgiven. If an advance of credit
incurred by the principal campaign committee of a candidate is forgiven by the creditor or
paid by an entity other than that principal campaign committee, it must be reported as a
donation in kind for the year in which the advance of credit was made.

(j) The report must disclose the name and address of each political committee,
political fund, principal campaign committee, or party unit to which contributions have
been made that aggregate in excess of $100 within the year and the amount and date of
each contribution.

(k) The report must disclose the sum of all contributions made by the reporting
entity during the reporting period.

(l) The report must disclose the name and address of each individual or association
to whom noncampaign disbursements have been made that aggregate in excess of $100
within the year by or on behalf of the reporting entity and the amount, date, and purpose of
each noncampaign disbursement.

(m) The report must disclose the sum of all noncampaign disbursements made
within the year by or on behalf of the reporting entity.

(n) The report must disclose the name and address of a nonprofit corporation that
provides administrative assistance to a political committee or political fund as authorized
by section 211B.15, subdivision 17, the type of administrative assistance provided, and the
aggregate fair market value of each type of assistance provided to the political committee
or political fund during the reporting period.

Sec. 18.

Minnesota Statutes 2004, section 10A.20, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Contents of report; conduit funds. new text end

new text begin A report by a conduit fund under
this section must disclose the sum of all contributions received by the fund and the sum
of all contributions made to each political committee, political fund, principal campaign
committee, or party unit and to all of them together during the reporting period. The
report must include the registration number of each recipient of contributions from the
conduit fund.
new text end

Sec. 19.

Minnesota Statutes 2004, section 10A.322, subdivision 1, is amended to read:

Subdivision 1.

Agreement by candidate.

(a) As a condition of receiving a public
subsidy, a candidate must sign and file with the board a written agreement in which the
candidate agrees that the candidate will comply with sections 10A.25; 10A.27, subdivision
10; 10A.31, subdivision 7, paragraph (c); and 10A.324.

(b) Before the first day of filing for office, the board must forward agreement forms
to all filing officers. The board must also provide agreement forms to candidates on
request at any time. The candidate must file the agreement with the board deleted text begin by September 1
preceding the candidate's general election or a special election held at the general election deleted text end new text begin
not later than the day after the candidate files the affidavit of candidacy or nominating
petition for the office new text end . An agreement may not be filed after that date. An agreement
once filed may not be rescinded.

(c) The board must notify the commissioner of revenue of any agreement signed
under this subdivision.

deleted text begin (d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means
of a special election and the filing period does not coincide with the filing period for the
general election, a candidate may sign and submit a spending limit agreement not later
than the day after the candidate files the affidavit of candidacy or nominating petition
for the office.
deleted text end

Sec. 20.

Minnesota Statutes 2004, section 43A.38, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Political appointments. new text end

new text begin An individual may not accept an appointment
to a position in the unclassified service in the executive branch, other than as the head
of a state department listed in section 15.06, within two years of having served as a
member of the legislature.
new text end

Sec. 21.

Minnesota Statutes 2004, section 211B.15, subdivision 16, is amended to read:

Subd. 16.

Employee political fund solicitation.

Any solicitation of political
contributions by an employee must be in writing, informational and nonpartisan in nature,
and not promotional for any particular candidate or group of candidates. The solicitation
must consist only of a general request on behalf of deleted text begin an independent political committee ( deleted text end new text begin a
new text end conduit fund deleted text begin ) deleted text end new text begin , as defined in section 10A.01, subdivision 10d, new text end and must state that there is
no minimum contribution, that a contribution or lack thereof will in no way impact the
employee's employment, that the employee must direct the contribution to candidates of
the employee's choice, and that any response by the employee shall remain confidential
and shall not be directed to the employee's supervisors or managers. Questions from an
employee regarding a solicitation may be answered orally or in writing consistent with the
above requirements. Nothing in this subdivision authorizes a corporate donation of an
employee's time prohibited under subdivision 2.

Sec. 22. new text begin APPLICATION.
new text end

new text begin Section 4 applies to an individual who takes office or position after its effective date.
new text end

Sec. 23. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end