1.1 	A bill for an act
1.2 	relating to ethics in government; prohibiting state
1.3 	agencies and authorities that issue bonds and
1.4 	political subdivisions from interacting with a
1.5 	third-party consultant with respect to engaging a firm
1.6 	to provide bond underwriting services; proposing
1.7 	coding for new law in Minnesota Statutes, chapters
1.8 	16A; 475.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. [16A.628] INTERACTING WITH THIRD-PARTY
1.11 	CONSULTANTS FOR AN UNDERWRITING FIRM.
1.12 	When seeking bond underwriting services, any agency or
1.13 	authority of the state that issues bonds must deal directly with
1.14 	the principals of a potential underwriting firm or its lobbyists.
1.15 	Any agency or authority of the state that issues bonds must not
1.16 	communicate, negotiate, or otherwise interact with any
1.17 	third-party consultant regarding possible engagement of a firm
1.18 	to provide bond underwriting services.  A firm seeking to
1.19 	provide bond underwriting services to any agency or authority of
1.20 	the state must provide certification that the firm has not
1.21 	employed or retained, directly or indirectly, any consultant who
1.22 	will be paid on a contingency basis if the agency or authority
1.23 	engages the firm to provide bond underwriting services.  Every
1.24 	contract and bid application and specification must contain a
1.25 	statement that compliance with this section is a material term
1.26 	and condition of the contract for bond underwriting services.
1.27 	Notwithstanding the provisions of this section, an agency or
2.1 	authority of the state that issues bonds may enter a contract
2.2 	for bond underwriting services that does not comply with this
2.3 	section to the extent required by federal law or if the
2.4 	commissioner of finance determines that a public exigency
2.5 	requires the agency or authority to enter such a contract.

2.6 	Sec. 2. [475.601] INTERACTING WITH THIRD-PARTY
2.7 	CONSULTANTS FOR AN UNDERWRITING FIRM.
2.8 	When seeking bond underwriting services, a municipality
2.9 	must deal directly with the principals of a potential
2.10 	underwriting firm or its lobbyists.  A municipality must not
2.11 	communicate, negotiate, or otherwise interact with any
2.12 	third-party consultant regarding possible engagement of a firm
2.13 	to provide bond underwriting services.  A firm seeking to
2.14 	provide bond underwriting services to a municipality must
2.15 	provide certification that the firm has not employed or
2.16 	retained, directly or indirectly, any consultant who will be
2.17 	paid on a contingency basis if the municipality engages the firm
2.18 	to provide bond underwriting services.  Every contract and bid
2.19 	application and specification must contain a statement that
2.20 	compliance with this section is a material term and condition of
2.21 	the contract for bond underwriting services.  Notwithstanding
2.22 	the provisions of this section, a municipality may enter a
2.23 	contract for bond underwriting services that does not comply
2.24 	with this section to the extent required by federal law or if
2.25 	the governing body of the municipality determines that a public
2.26 	exigency requires the municipality to enter such a contract.