1.1                          A bill for an act 
  1.2             relating to lobbyists; eliminating requirement that 
  1.3             those who lobby to place a constitutional amendment on 
  1.4             the ballot register as a political committee; 
  1.5             requiring full disclosure of the total costs of 
  1.6             lobbying; permitting candidate to rely on presence or 
  1.7             absence of registration number in determining whether 
  1.8             contribution is from a lobbyist; amending Minnesota 
  1.9             Statutes 1996, sections 10A.01, subdivisions 23 and 
  1.10            28; 10A.04; 10A.05; 10A.15, subdivision 5; and 10A.20, 
  1.11            subdivision 3. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 10A.01, 
  1.14  subdivision 23, is amended to read: 
  1.15     Subd. 23.  [BALLOT QUESTION.] "Ballot question" means a 
  1.16  question or proposition which is placed on the ballot and which 
  1.17  may be voted on by all voters of the state.  ~~"Promoting or~~ 
  1.18  ~~defeating a ballot question" includes activities related to~~ 
  1.19  ~~qualifying the question for placement on the ballot.~~  
  1.20     Sec. 2.  Minnesota Statutes 1996, section 10A.01, 
  1.21  subdivision 28, is amended to read: 
  1.22     Subd. 28.  [PRINCIPAL.] "Principal" means an individual ~~or~~, 
  1.23  association, political subdivision, or public system of higher 
  1.24  education that:  
  1.25     (1) ~~spends more than $500 in the aggregate in any calendar~~ 
  1.26  ~~year to engage a lobbyist, compensate~~ engages for pay or other 
  1.27  consideration a lobbyist~~,~~ or ~~authorize~~ authorizes the 
  1.28  expenditure of money by a lobbyist; or 
  2.1      (2) is not included in clause (1) and spends ~~a total of at~~ 
  2.2   ~~least~~ more than $50,000 in any calendar year on efforts to 
  2.3   influence legislative action, administrative action, or the 
  2.4   official action of metropolitan governmental units, as described 
  2.5   in section 10A.04, subdivision 6.  
  2.6      Sec. 3.  Minnesota Statutes 1996, section 10A.04, is 
  2.7   amended to read: 
  2.8      10A.04 [LOBBYIST REPORTS.] 
  2.9      Subdivision 1.  [CONTINUING REPORTS.] ~~Each~~ A lobbyist shall 
  2.10  file reports of the lobbyist's activities with the board as long 
  2.11  as the lobbyist continues to lobby.  A lobbyist may file a 
  2.12  termination statement at any time after ceasing to lobby. 
  2.13     Subd. 2.  [DUE DATES.] Each report ~~shall~~ must cover the 
  2.14  time from the last day of the period covered by the last report 
  2.15  to 15 days ~~prior to~~ before the current filing date.  The reports 
  2.16  ~~shall~~ must be filed with the board by the following dates: 
  2.17     (a) January 15; 
  2.18     (b) April 15; and 
  2.19     (c) July 15.  
  2.20     Subd. 3.  [INFORMATION FROM PRINCIPAL.] ~~Each person or~~ 
  2.21  ~~association~~ A principal about whose activities a lobbyist is 
  2.22  required to report shall provide the information required by 
  2.23  sections 10A.03 to 10A.05 to the lobbyist no later than five 
  2.24  days before the prescribed filing date. 
  2.25     Subd. 4.  [CONTENT.] (a) The report shall include such 
  2.26  information as the board may require from the registration form 
  2.27  and the information required by this subdivision for the 
  2.28  reporting period. 
  2.29     (b) The report must contain the name and registration 
  2.30  number of the lobbyist, the name and identification number of 
  2.31  each principal, and any changes or updates to the information 
  2.32  provided in the registration form.  The report must contain, for 
  2.33  each general issue area in which the lobbyist lobbied on behalf 
  2.34  of the principal during the reporting period: 
  2.35     (1) a list of the specific issues upon which the lobbyist 
  2.36  lobbied, including, to the maximum extent possible, a list of 
  3.1   bill numbers and references to specific administrative actions; 
  3.2      (2) a list of the houses of the legislature and 
  3.3   administrative agencies contacted by the lobbyist on behalf of 
  3.4   the principal; and 
  3.5      (3) a list of employees of the lobbyist who acted on behalf 
  3.6   of the principal. 
  3.7      (c) The report must contain the total amount of all income 
  3.8   from the principal, including amounts paid to cover the 
  3.9   lobbyist's salary and administrative expenses.  The report must 
  3.10  include any payments to the lobbyist by any other person for 
  3.11  lobbying activities on behalf of the principal. 
  3.12     (d) Each lobbyist shall report the lobbyist's total 
  3.13  disbursements on lobbying, separately listing lobbying to 
  3.14  influence legislative action, lobbying to influence 
  3.15  administrative action, and lobbying to influence the official 
  3.16  actions of a metropolitan governmental unit, and a breakdown of 
  3.17  disbursements for each of those kinds of lobbying into 
  3.18  categories specified by the board, including but not limited to 
  3.19  the cost of publication and distribution of each publication 
  3.20  used in lobbying; other printing; media, including the cost of 
  3.21  production; postage; travel; fees, including allowances; 
  3.22  entertainment; telephone and telegraph; and other expenses. 
  3.23     ~~(c)~~ (e) Each lobbyist shall report the amount and nature of 
  3.24  each honorarium, gift, loan, item ~~or~~, benefit, ~~excluding~~ 
  3.25  ~~contributions~~ or contribution to a candidate, equal in value to 
  3.26  $5 or more, given or paid to any ~~public or local~~ official, as 
  3.27  defined in section 10A.071, subdivision 1, by the lobbyist ~~or~~ 
  3.28  ~~any employer or any employee of the lobbyist~~.  The list shall 
  3.29  include the name and address of each ~~public or local~~ official to 
  3.30  whom the honorarium, gift, loan, item ~~or~~, benefit, or 
  3.31  contribution was given or paid and the date it was given or 
  3.32  paid.  ~~A lobbyist need report only the aggregate amount and~~ 
  3.33  ~~nature of food or beverages given or made available to all~~ 
  3.34  ~~members of the legislature or a house of the legislature or to~~ 
  3.35  ~~all members of a local legislative body, along with the name of~~ 
  3.36  ~~the legislative body and the date it was given or made available.~~
  4.1      ~~(d) Each lobbyist shall report each original source of~~ 
  4.2   ~~funds in excess of $500 in any year used for the purpose of~~ 
  4.3   ~~lobbying to influence legislative action, each such source of~~ 
  4.4   ~~funds used to influence administrative action, and each such~~ 
  4.5   ~~source of funds used to influence the official action of~~ 
  4.6   ~~metropolitan governmental units.  The list shall include the~~ 
  4.7   ~~name, address and employer, or, if self-employed, the occupation~~ 
  4.8   ~~and principal place of business, of each payer of funds in~~ 
  4.9   ~~excess of $500.~~ 
  4.10     (f) Each lobbyist shall report the amount and date of each 
  4.11  contribution given by the lobbyist to a party organization 
  4.12  within a house of the legislature. 
  4.13     ~~Subd. 4a.  [STATEMENT IN LIEU OF REPORT.] If in any~~ 
  4.14  ~~reporting period the lobbyist's reportable disbursements total~~ 
  4.15  ~~not over $100 and no honorarium, gift, loan, item or benefit~~ 
  4.16  ~~equal in value to $50 or more was given or paid to any public~~ 
  4.17  ~~official, a statement to that effect in lieu of the report may~~ 
  4.18  ~~be filed for that period.  The unreported disbursements shall be~~ 
  4.19  ~~included in the report for the following period, unless the~~ 
  4.20  ~~total for that period, including the carryover, is not over~~ 
  4.21  ~~$100.  The January 15 report shall include all previously~~ 
  4.22  ~~unreported disbursements, even though the total for the year is~~ 
  4.23  ~~not over $100.~~ 
  4.24     Subd. 5.  [FAILURE TO FILE.] The board shall notify by 
  4.25  certified mail or personal service any lobbyist or principal who 
  4.26  fails after seven days after a filing date imposed by this 
  4.27  section to file a report ~~or statement~~ required by this section.  
  4.28  If a lobbyist or principal fails to file a report within seven 
  4.29  days after receiving this notice, the board may impose a late 
  4.30  filing fee of $5 per day, not to exceed $100, commencing with 
  4.31  the eighth day after receiving notice.  The board shall further 
  4.32  notify by certified mail or personal service any lobbyist or 
  4.33  principal who fails to file a report within 21 days after 
  4.34  receiving a first notice that the lobbyist may be subject to a 
  4.35  criminal penalty for failure to file the report.  A lobbyist or 
  4.36  principal who knowingly fails to file such a report ~~or statement~~ 
  5.1   within seven days after receiving a second notice from the board 
  5.2   is guilty of a misdemeanor. 
  5.3      Subd. 6.  [~~LOBBYIST AND~~ PRINCIPAL REPORTS.] (a) ~~Each~~ A 
  5.4   principal that pays more than $500 in a calendar year to a 
  5.5   lobbyist or spends more than $50,000 in a calendar year on 
  5.6   efforts to influence legislative action, administrative action, 
  5.7   or the official action of metropolitan governmental units shall 
  5.8   report to the board as required in this subdivision by March 15 
  5.9   for the preceding calendar year. 
  5.10     (b) ~~Each~~ The principal shall report ~~which of the following~~ 
  5.11  ~~categories includes~~ the total amount~~, rounded to the nearest~~ 
  5.12  ~~dollar,~~ spent by the principal during the preceding calendar 
  5.13  year to influence legislative action, the total amount spent by 
  5.14  the principal during the preceding calendar year to influence 
  5.15  administrative action, and the total amount spent by the 
  5.16  principal during the preceding calendar year to influence the 
  5.17  official action of metropolitan governmental units.~~:~~ 
  5.18     ~~(1) $501 to $50,000;~~ 
  5.19     ~~(2) $50,001 to $150,000; or~~ 
  5.20     ~~(3) $150,001 to $250,000.~~ 
  5.21     (c) ~~Beyond $250,000, each additional $250,000 constitutes~~ 
  5.22  ~~an additional category, and each principal shall report which of~~ 
  5.23  ~~the categories includes the total amount spent by the principal~~ 
  5.24  ~~for the purposes provided in this subdivision.~~ 
  5.25     ~~(d)~~ The principal shall report under this subdivision a 
  5.26  total amount that includes: 
  5.27     (1) all direct payments by the principal to lobbyists in 
  5.28  ~~Minnesota~~ this state; 
  5.29     (2) all expenditures for advertising, mailing, research, 
  5.30  analysis, compilation and dissemination of information, and 
  5.31  public relations campaigns related to legislative action, 
  5.32  administrative action, or the official action of metropolitan 
  5.33  governmental units in ~~Minnesota~~ this state; and 
  5.34     (3) all salaries and administrative expenses attributable 
  5.35  to activities of the principal or a lobbyist engaged by the 
  5.36  principal relating to efforts on behalf of the principal to 
  6.1   influence legislative action, administrative action, or the 
  6.2   official action of metropolitan governmental units in ~~Minnesota~~ 
  6.3   this state. 
  6.4      Subd. 7.  [FINANCIAL RECORDS.] The board may randomly audit 
  6.5   the financial records of lobbyists and principals required to 
  6.6   report under this section. 
  6.7      Subd. 8.  [REPORTS BY SOLICITORS.] A lobbyist who directly 
  6.8   solicits and causes others to make aggregate contributions to 
  6.9   candidates or a caucus of the members of a political party in a 
  6.10  house of the legislature in excess of $5,000 between January 1 
  6.11  of the election year and 25 days before the primary or general 
  6.12  election must file the information in the report required by 
  6.13  section 10A.20, subdivision 14, ten days before the primary or 
  6.14  general election.  This disclosure requirement is in addition to 
  6.15  the report required by section 10A.20, subdivision 14. 
  6.16     Sec. 4.  Minnesota Statutes 1996, section 10A.05, is 
  6.17  amended to read: 
  6.18     10A.05 [LOBBYIST REPORT.] 
  6.19     Within 30 days after each lobbyist filing date set by 
  6.20  section 10A.04, the executive director of the board shall ~~report~~ 
  6.21  ~~to the governor, and the presiding officer of each house of the~~ 
  6.22  ~~legislature,~~ publish the names of the lobbyists registered who 
  6.23  were not previously reported, the names of the ~~persons or~~ 
  6.24  ~~associations~~ principals whom they represent as lobbyists, the 
  6.25  subject or subjects on which they are lobbying, and whether in 
  6.26  each case they lobby to influence legislative ~~or~~ action, 
  6.27  administrative action ~~or both.  At the same times, the executive~~ 
  6.28  ~~director of the board shall report to the governing body of each~~ 
  6.29  ~~metropolitan governmental unit, the names of the registered~~ 
  6.30  ~~lobbyists who attempt to influence the official action of~~ 
  6.31  ~~metropolitan governmental units, the names of the persons or~~ 
  6.32  ~~associations whom they represent as lobbyists, and the subject~~ 
  6.33  ~~or subjects on which they are lobbying~~, or the official action 
  6.34  of a metropolitan governmental unit. 
  6.35     Sec. 5.  Minnesota Statutes 1996, section 10A.15, 
  6.36  subdivision 5, is amended to read: 
  7.1      Subd. 5.  [LOBBYIST, POLITICAL COMMITTEE, OR POLITICAL FUND 
  7.2   REGISTRATION NUMBER ON CHECKS.] A ~~contribution made to a~~ 
  7.3   ~~candidate by a~~ lobbyist, political committee, or political fund 
  7.4   that makes a contribution to a candidate must show on the 
  7.5   contribution the name of the lobbyist, political committee, or 
  7.6   political fund and the number under which it is registered with 
  7.7   the board.  A candidate may rely upon the presence or absence of 
  7.8   a registration number in determining whether the contribution is 
  7.9   from a lobbyist and is not subject to a civil penalty for the 
  7.10  failure of a contributor to comply with this subdivision. 
  7.11     Sec. 6.  Minnesota Statutes 1996, section 10A.20, 
  7.12  subdivision 3, is amended to read: 
  7.13     Subd. 3.  [CONTENTS OF REPORT.] Each report under this 
  7.14  section shall disclose: 
  7.15     (a) The amount of liquid assets on hand at the beginning of 
  7.16  the reporting period; 
  7.17     (b) The name, address and employer, or occupation if 
  7.18  self-employed, of each individual, political committee or 
  7.19  political fund who within the year has made one or more 
  7.20  transfers or donations in kind to the political committee or 
  7.21  political fund, including the purchase of tickets for all fund 
  7.22  raising efforts, which in aggregate exceed $100 for legislative 
  7.23  or statewide candidates or ballot questions, together with the 
  7.24  amount and date of each transfer or donation in kind, and the 
  7.25  aggregate amount of transfers and donations in kind within the 
  7.26  year from each source so disclosed.  A donation in kind shall be 
  7.27  disclosed at its fair market value.  An approved expenditure is 
  7.28  listed as a donation in kind.  A donation in kind is considered 
  7.29  consumed in the reporting period in which it is received.  The 
  7.30  names of contributors shall be listed in alphabetical order; 
  7.31     (c) The report of a party organization in a house of the 
  7.32  legislature must disclose the amount and date of each 
  7.33  contribution from a lobbyist and the name and registration 
  7.34  number of the lobbyist; 
  7.35     ~~(c)~~ (d) The sum of contributions to the political committee 
  7.36  or political fund during the reporting period; 
  8.1      ~~(d)~~ (e) Each loan made or received by the political 
  8.2   committee or political fund within the year in aggregate in 
  8.3   excess of $100, continuously reported until repaid or forgiven, 
  8.4   together with the name, address, occupation and the principal 
  8.5   place of business, if any, of the lender and any endorser and 
  8.6   the date and amount of the loan.  If any loan made to the 
  8.7   principal campaign committee of a candidate is forgiven at any 
  8.8   time or repaid by any entity other than that principal campaign 
  8.9   committee, it shall be reported as a contribution for the year 
  8.10  in which the loan was made; 
  8.11     ~~(e)~~ (f) Each receipt in excess of $100 not otherwise listed 
  8.12  under clauses (b) to ~~(d)~~ (e); 
  8.13     ~~(f)~~ (g) The sum of all receipts of the political committee 
  8.14  or political fund during the reporting period; 
  8.15     ~~(g)~~ (h) The name and address of each individual or 
  8.16  association to whom aggregate expenditures, including approved 
  8.17  expenditures, have been made by or on behalf of the political 
  8.18  committee or political fund within the year in excess of $100, 
  8.19  together with the amount, date and purpose of each expenditure 
  8.20  and the name and address of, and office sought by, each 
  8.21  candidate on whose behalf the expenditure was made, 
  8.22  identification of the ballot question which the expenditure is 
  8.23  intended to promote or defeat, and in the case of independent 
  8.24  expenditures made in opposition to a candidate, the name, 
  8.25  address and office sought for each such candidate; 
  8.26     ~~(h)~~ (i) The sum of all expenditures made by or on behalf of 
  8.27  the political committee or political fund during the reporting 
  8.28  period; 
  8.29     ~~(i)~~ (j) The amount and nature of any advance of credit 
  8.30  incurred by the political committee or political fund, 
  8.31  continuously reported until paid or forgiven.  If any advance of 
  8.32  credit incurred by the principal campaign committee of a 
  8.33  candidate is forgiven at any time by the creditor or paid by any 
  8.34  entity other than that principal campaign committee, it shall be 
  8.35  reported as a donation in kind for the year in which the advance 
  8.36  of credit was incurred; 
  9.1      ~~(j)~~ (k) The name and address of each political committee, 
  9.2   political fund, or principal campaign committee to which 
  9.3   aggregate transfers in excess of $100 have been made within the 
  9.4   year, together with the amount and date of each transfer; 
  9.5      ~~(k)~~ (l) The sum of all transfers made by the political 
  9.6   committee, political fund, or principal campaign committee 
  9.7   during the reporting period; 
  9.8      ~~(l)~~ (m) Except for contributions to a candidate or 
  9.9   committee for a candidate for office in a municipality as 
  9.10  defined in section 471.345, subdivision 1, the name and address 
  9.11  of each individual or association to whom aggregate noncampaign 
  9.12  disbursements in excess of $100 have been made within the year 
  9.13  by or on behalf of a principal campaign committee, political 
  9.14  committee, or political fund, together with the amount, date, 
  9.15  and purpose of each noncampaign disbursement; 
  9.16     ~~(m)~~ (n) The sum of all noncampaign disbursements made 
  9.17  within the year by or on behalf of a principal campaign 
  9.18  committee, political committee, or political fund; 
  9.19     ~~(n)~~ (o) The name and address of a nonprofit corporation 
  9.20  that provides administrative assistance to a political committee 
  9.21  or political fund as authorized by section 211B.15, subdivision 
  9.22  17, together with the type of administrative assistance provided 
  9.23  and the aggregate fair market value of each type of assistance 
  9.24  provided to the political committee or political fund during the 
  9.25  reporting period; and 
  9.26     ~~(o)~~ (p) A report filed under subdivision 2, clause (b), by 
  9.27  a political committee or political fund that is subject to 
  9.28  subdivision 14, must contain the information required by 
  9.29  subdivision 14, if the political committee or political fund has 
  9.30  solicited and caused others to make aggregate contributions 
  9.31  greater than $5,000 between January 1 of the general election 
  9.32  year and the end of the reporting period.  This disclosure 
  9.33  requirement is in addition to the report required by subdivision 
  9.34  14. 
  9.35     Sec. 7.  [EFFECTIVE DATE.] 
  9.36     This act is effective July 1, 1997.