1.1 	A bill for an act
1.2 	relating to ethics in government; increasing public's right to know how lobbyists 
1.3 	are influencing the legislative process; requiring disclosure of economic interests 
1.4 	of independent contractors and consultants; changing certain definitions; 
1.5 	requiring disclosure of contributions to and from conduit funds; prohibiting 
1.6 	former legislators, constitutional officers, and agency heads from lobbying for 
1.7 	legislative or administrative action for two years after leaving office; requiring 
1.8 	disclosure of the costs of lobbying; requiring certain reports of lobbying activity; 
1.9 	advancing the date for filing spending limit agreements; prohibiting legislators 
1.10 	from serving in certain positions in the executive branch for two years after 
1.11 	leaving office; prohibiting corporations from providing administrative assistance 
1.12 	to political committees and political funds; extending deadline for return of 
1.13 	contributions;amending Minnesota Statutes 2004, sections 10A.01, subdivision 
1.14 	11, by adding a subdivision; 10A.04, subdivision 4; 10A.14, subdivisions 1, 2; 
1.15 	10A.15, subdivisions 1, 2, 3, 5; 10A.17, subdivision 1; 10A.20, subdivisions 1, 
1.16 	2, 3,  by adding a subdivision; 10A.322, subdivision 1; 43A.38, by adding a 
1.17 	subdivision; 211B.15, subdivision 16; Minnesota Statutes 2005 Supplement, 
1.18 	sections 10A.01, subdivision 5; 10A.04, subdivision 6; proposing coding for new 
1.19 	law in Minnesota Statutes, chapter 10A; repealing Minnesota Statutes 2004, 
1.20 	section 211B.15, subdivision 17.
1.21 	 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	Section 1. Minnesota Statutes 2005 Supplement, section 10A.01, subdivision 5, 
1.23 	is amended to read:
1.24 		Subd. 5.Associated business. (a) "Associated business" means an association, 
1.25 	corporation, partnership, limited liability company, limited liability partnership, or other 
1.26 	organized legal entity from which the individual receives compensation in excess of 
1.27 	~~$50~~ $500 in a year, except for actual and reasonable expenses, ~~in any month~~ as a director, 
1.28 	officer, owner, member, partner, employer or employee, or whose securities the individual 
1.29 	holds worth $2,500 or more at fair market value.
2.1 	 (b) "Associated business" also means a lobbyist, principal, or interested person 
2.2 	by whom the individual is compensated in excess of $500 in a year, except for actual 
2.3 	and reasonable expenses, for providing services to the lobbyist, principal, or interested 
2.4 	person as an independent contractor or consultant. If an individual is compensated by 
2.5 	an association for providing services to a lobbyist, principal, or interested person as an 
2.6 	independent contractor or consultant, "associated business" includes both the association 
2.7 	that pays the compensation and the lobbyist, principal, or interested person to whom 
2.8 	the services are provided. 
2.9 	 (c) "Interested person" means a person or a representative of a person or association 
2.10 	that has a direct financial interest in a decision that the individual receiving the 
2.11 	compensation is authorized to make as a public or local official or will be authorized to 
2.12 	make upon becoming a public or local official.  To be "direct," the financial interest of 
2.13 	the person or association paying the compensation to the individual must be of greater 
2.14 	consequence to the payer than the general interest of other residents or taxpayers of the 
2.15 	individual's governmental unit. 

2.16 	Sec. 2. Minnesota Statutes 2004, section 10A.01, is amended by adding a subdivision 
2.17 	to read:
2.18 		Subd. 10d.Conduit fund. "Conduit fund" means money, a negotiable instrument, 
2.19 	or a donation in kind collected by an association from its employees and contributed to a 
2.20 	principal campaign committee, political committee, political fund, or party unit only as 
2.21 	directed by the employee from whom the money was collected.

2.22 	Sec. 3. Minnesota Statutes 2004, section 10A.01, subdivision 11, is amended to read:
2.23 		Subd. 11.Contribution. (a) "Contribution" means money, a negotiable instrument, 
2.24 	or a donation in kind that is given to a political committee, political fund, conduit fund, 
2.25 	principal campaign committee, or party unit.
2.26 	(b) "Contribution" includes a loan or advance of credit to a political committee, 
2.27 	political fund, principal campaign committee, or party unit, if the loan or advance of credit 
2.28 	is: (1) forgiven; or (2) repaid by an individual or an association other than the political 
2.29 	committee, political fund, principal campaign committee, or party unit to which the loan 
2.30 	or advance of credit was made. If an advance of credit or a loan is forgiven or repaid as 
2.31 	provided in this paragraph, it is a contribution in the year in which the loan or advance 
2.32 	of credit was made.
2.33 	(c) "Contribution" does not include services provided without compensation by an 
2.34 	individual volunteering personal time on behalf of a candidate, ballot question, political 
3.1 	committee, political fund, principal campaign committee, or party unit, or the publishing 
3.2 	or broadcasting of news items or editorial comments by the news media.

3.3 	Sec. 4. [10A.035] LOBBYING RESTRICTION.
3.4 	For two years after leaving one of the offices or positions listed in this section, an 
3.5 	individual may not act as a lobbyist who attempts to influence legislative or administrative 
3.6 	action: 
3.7 	(1) member of the legislature; 
3.8 	(2) constitutional officer; or 
3.9 	(3) commissioner, deputy commissioner, or full-time head of any state or 
3.10 	metropolitan department, agency, board, or commission. 

3.11 	Sec. 5. Minnesota Statutes 2004, section 10A.04, subdivision 4, is amended to read:
3.12 		 Subd. 4.Content.  (a) A report under this section must include information the 
3.13 	board requires from the registration form and the information required by this subdivision 
3.14 	for the reporting period.
3.15 	 (b) A lobbyist must report a general description of the subject or subjects on which 
3.16 	the lobbyist lobbied on behalf of each principal. 
3.17 	(c) A lobbyist must report the unitemized total amount of all income from the 
3.18 	principal for lobbying activities on behalf of the principal. The total must include amounts 
3.19 	paid to cover the lobbyist's salary and administrative expenses.  The report must include 
3.20 	any payments to the lobbyist by any other person for lobbying activities on behalf of 
3.21 	the principal. 
3.22 	(d) A lobbyist must report the lobbyist's total disbursements on lobbying, separately 
3.23 	listing lobbying to influence legislative action, lobbying to influence administrative action, 
3.24 	and lobbying to influence the official actions of a metropolitan governmental unit, and a 
3.25 	breakdown of disbursements for each of those kinds of lobbying into categories specified 
3.26 	by the board, including but not limited to the cost of publication and distribution of each 
3.27 	publication used in lobbying; other printing; media, including the cost of production; 
3.28 	postage; travel; fees, including allowances; entertainment; telephone and telegraph; and 
3.29 	other expenses.
3.30 	~~(c)~~ (e) A lobbyist must report the amount and nature of each gift, item, or benefit~~,~~ 
3.31 	~~excluding contributions to a candidate,~~ equal in value to $5 or more, and each contribution 
3.32 	to a candidate equal in value to $50 or more, given or paid to any official, as defined in 
3.33 	section 10A.071, subdivision 1, by the lobbyist or ~~an employer or employee~~at the direction 
4.1 	of the lobbyist.  The list must include the name and address of each official to whom the 
4.2 	gift, item, ~~or~~ benefit, or contribution was given or paid and the date it was given or paid.
4.3 	~~(d)~~ (f) A lobbyist must report each original source of money in excess of $500 in 
4.4 	any year used for the purpose of lobbying to influence legislative action, administrative 
4.5 	action, or the official action of a metropolitan governmental unit.  The list must include the 
4.6 	name, address, and employer, or, if self-employed, the occupation and principal place of 
4.7 	business, of each payer of money in excess of $500.
4.8 	~~(e) On the report due June 15, the lobbyist must provide a general description of the~~ 
4.9 	~~subjects lobbied in the previous 12 months.~~
4.10 	(g) A lobbyist must report the amount and date of each contribution given by the 
4.11 	lobbyist to a party organization within a house of the legislature.

4.12 	Sec. 6. Minnesota Statutes 2005 Supplement, section 10A.04, subdivision 6, is 
4.13 	amended to read:
4.14 		Subd. 6.Principal reports. (a) A principal must report to the board as required in 
4.15 	this subdivision by March 15 for the preceding calendar year.
4.16 	(b) The principal must report the total amount~~, rounded to the nearest $20,000,~~
4.17 	spent by the principal during the preceding calendar year to influence legislative action, 
4.18 	the total amount spent by the principal during the preceding calendar year to influence 
4.19 	administrative action, and the total amount spent by the principal during the preceding 
4.20 	calendar year to influence the official action of metropolitan governmental units.
4.21 	(c) The principal must report under this subdivision a total amount that includes:
4.22 	(1) all direct payments by the principal to lobbyists in this state;
4.23 	(2) all expenditures for advertising, mailing, research, analysis, compilation and 
4.24 	dissemination of information, and public relations campaigns related to legislative action, 
4.25 	administrative action, or the official action of metropolitan governmental units in this 
4.26 	state; and
4.27 	(3) all salaries and administrative expenses attributable to activities of the principal 
4.28 	or a lobbyist engaged by the principal relating to efforts on behalf of the principal to 
4.29 	influence legislative action, administrative action, or the official action of metropolitan 
4.30 	governmental units in this state.

4.31 	Sec. 7. [10A.125] CONDUIT FUNDS.
4.32 		Subdivision 1.Commingling prohibited. The contents of a conduit fund may not 
4.33 	be commingled with other funds or with the personal funds of an officer or member of 
4.34 	the fund.  
5.1 		Subd. 2.Treasurer. An association that has a conduit fund must elect or appoint a 
5.2 	treasurer of the fund.
5.3 		Subd. 3.Treasurer vacancy. A conduit fund may not accept a contribution or 
5.4 	make an expenditure or contribution from the fund while the office of treasurer of the 
5.5 	fund is vacant.
5.6 		Subd. 4.Penalty. A person who knowingly violates this section is subject to a civil 
5.7 	penalty imposed by the board of up to $1,000. 

5.8 	Sec. 8. Minnesota Statutes 2004, section 10A.14, subdivision 1, is amended to read:
5.9 		Subdivision 1.First registration. The treasurer of a political committee, political 
5.10 	fund, conduit fund, principal campaign committee, or party unit must register with the 
5.11 	board by filing a statement of organization no later than 14 days after the committee, 
5.12 	fund, or party unit has made a contribution, received contributions, or made expenditures 
5.13 	in excess of $100.

5.14 	Sec. 9. Minnesota Statutes 2004, section 10A.14, subdivision 2, is amended to read:
5.15 		Subd. 2.Form. The statement of organization must include:
5.16 	(1) the name and address of the committee, fund, or party unit;
5.17 	(2) the name and address of the chair of a political committee, principal campaign 
5.18 	committee, or party unit;
5.19 	(3) the name and address of any supporting association of a political fund or conduit 
5.20 	fund;
5.21 	(4) the name and address of the treasurer and any deputy treasurers;
5.22 	(5) a listing of all depositories or safety deposit boxes used; and
5.23 	(6) for the state committee of a political party only, a list of its party units.

5.24 	Sec. 10. Minnesota Statutes 2004, section 10A.15, subdivision 1, is amended to read:
5.25 		Subdivision 1.Anonymous contributions. A political committee, political fund, 
5.26 	conduit fund, principal campaign committee, or party unit may not retain an anonymous 
5.27 	contribution in excess of $20, but must forward it to the board for deposit in the general 
5.28 	account of the state elections campaign fund.

5.29 	Sec. 11. Minnesota Statutes 2004, section 10A.15, subdivision 2, is amended to read:
5.30 		Subd. 2.Source; amount; date. An individual who receives a contribution in 
5.31 	excess of $20 for a political committee, political fund, conduit fund, principal campaign 
5.32 	committee, or party unit must, on demand of the treasurer, inform the treasurer of the 
6.1 	name and, if known, the address of the source of the contribution, the amount of the 
6.2 	contribution, and the date it was received.

6.3 	Sec. 12. Minnesota Statutes 2004, section 10A.15, subdivision 3, is amended to read:
6.4 		Subd. 3.Deposit. All contributions received by or on behalf of a candidate, 
6.5 	principal campaign committee, political committee, political fund, conduit fund, or 
6.6 	party unit must be deposited in an account designated "Campaign Fund of ..... (name of 
6.7 	candidate, committee, fund, or party unit)." All contributions must be deposited promptly 
6.8 	upon receipt and, except for contributions received during the last three days of a reporting 
6.9 	period as described in section  10A.20, must be deposited during the reporting period in 
6.10 	which they were received. A contribution received during the last three days of a reporting 
6.11 	period must be deposited within 72 hours after receipt and must be reported as received 
6.12 	during the reporting period whether or not deposited within that period. A candidate, 
6.13 	principal campaign committee, political committee, political fund, conduit fund, or party 
6.14 	unit may refuse to accept a contribution. A deposited contribution may be returned to the 
6.15 	contributor within ~~60~~ 90 days after deposit. A contribution deposited and not returned 
6.16 	within ~~60~~ 90 days after that deposit must be reported as accepted. 

6.17 	Sec. 13. Minnesota Statutes 2004, section 10A.15, subdivision 5, is amended to read:
6.18 		Subd. 5.Registration number on checks. A contribution made to a candidate by a 
6.19 	lobbyist, political committee, political fund, conduit fund, or party unit must show the 
6.20 	name of the lobbyist, political committee, political fund, conduit fund, or party unit and 
6.21 	the number under which it is registered with the board.

6.22 	Sec. 14. Minnesota Statutes 2004, section 10A.17, subdivision 1, is amended to read:
6.23 		Subdivision 1.Authorization. A political committee, political fund, conduit fund, 
6.24 	principal campaign committee, or party unit may not expend money unless the expenditure 
6.25 	is authorized by the treasurer or deputy treasurer of that committee, fund, or party unit.

6.26 	Sec. 15. Minnesota Statutes 2004, section 10A.20, subdivision 1, is amended to read:
6.27 		Subdivision 1.First filing; duration. The treasurer of a political committee, 
6.28 	political fund, conduit fund, principal campaign committee, or party unit must begin to 
6.29 	file the reports required by this section in the first year it receives contributions or makes 
6.30 	expenditures in excess of $100 and must continue to file until the committee, fund, or 
6.31 	party unit is terminated.

7.1 	Sec. 16. Minnesota Statutes 2004, section 10A.20, subdivision 2, is amended to read:
7.2 		Subd. 2.Time for filing. (a) The reports must be filed with the board on or before 
7.3 	January 31 of each year and additional reports must be filed as required and in accordance 
7.4 	with paragraphs (b) and (c).
7.5 	(b) In each year in which the name of the candidate is on the ballot, the report of 
7.6 	the principal campaign committee must be filed 15 days before a primary and ten days 
7.7 	before a general election, seven days before a special primary and a special election, 
7.8 	and ten days after a special election cycle.
7.9 	(c) In each general election year, a political committee, political fund, conduit fund, 
7.10 	or party unit must file reports 15 days before a primary and ten days before a general 
7.11 	election.

7.12 	Sec. 17. Minnesota Statutes 2004, section 10A.20, subdivision 3, is amended to read:
7.13 		Subd. 3.Contents of report; other than conduit funds. (a) The report by an 
7.14 	entity other than a conduit fund must disclose the amount of liquid assets on hand at the 
7.15 	beginning of the reporting period.
7.16 	(b) The report must disclose the name, address, and employer, or occupation if 
7.17 	self-employed, of each individual or association that has made one or more contributions 
7.18 	to the reporting entity, including the purchase of tickets for a fund-raising effort, that in 
7.19 	aggregate within the year exceed $100 for legislative or statewide candidates or ballot 
7.20 	questions, together with the amount and date of each contribution, and the aggregate 
7.21 	amount of contributions within the year from each source so disclosed. A donation in kind 
7.22 	must be disclosed at its fair market value. An approved expenditure must be listed as a 
7.23 	donation in kind. A donation in kind is considered consumed in the reporting period 
7.24 	in which it is received. The names of contributors must be listed in alphabetical order. 
7.25 	Contributions from the same contributor must be listed under the same name. When a 
7.26 	contribution received from a contributor in a reporting period is added to previously 
7.27 	reported unitemized contributions from the same contributor and the aggregate exceeds 
7.28 	the disclosure threshold of this paragraph, the name, address, and employer, or occupation 
7.29 	if self-employed, of the contributor must then be listed on the report.
7.30 	(c) The report must disclose the sum of contributions to the reporting entity and the 
7.31 	sum of all contributions received through each conduit fund and through all conduit funds 
7.32 	during the reporting period. The report must include the name and registration number of 
7.33 	each conduit fund from which a contribution was received.
7.34 	(d) The report must disclose each loan made or received by the reporting entity 
7.35 	within the year in aggregate in excess of $100, continuously reported until repaid or 
8.1 	forgiven, together with the name, address, occupation, and principal place of business, 
8.2 	if any, of the lender and any endorser and the date and amount of the loan. If a loan 
8.3 	made to the principal campaign committee of a candidate is forgiven or is repaid by an 
8.4 	entity other than that principal campaign committee, it must be reported as a contribution 
8.5 	for the year in which the loan was made.
8.6 	(e) The report must disclose each receipt over $100 during the reporting period not 
8.7 	otherwise listed under paragraphs (b) to (d).
8.8 	(f) The report must disclose the sum of all receipts of the reporting entity during 
8.9 	the reporting period.
8.10 	(g) The report must disclose the name and address of each individual or association 
8.11 	to whom aggregate expenditures, including approved expenditures, have been made by 
8.12 	or on behalf of the reporting entity within the year in excess of $100, together with the 
8.13 	amount, date, and purpose of each expenditure and the name and address of, and office 
8.14 	sought by, each candidate on whose behalf the expenditure was made, identification of the 
8.15 	ballot question that the expenditure was intended to promote or defeat, and in the case 
8.16 	of independent expenditures made in opposition to a candidate, the candidate's name, 
8.17 	address, and office sought. A reporting entity making an expenditure on behalf of more 
8.18 	than one candidate for state or legislative office must allocate the expenditure among the 
8.19 	candidates on a reasonable cost basis and report the allocation for each candidate.
8.20 	(h) The report must disclose the sum of all expenditures made by or on behalf of the 
8.21 	reporting entity during the reporting period.
8.22 	(i) The report must disclose the amount and nature of an advance of credit incurred 
8.23 	by the reporting entity, continuously reported until paid or forgiven. If an advance of credit 
8.24 	incurred by the principal campaign committee of a candidate is forgiven by the creditor or 
8.25 	paid by an entity other than that principal campaign committee, it must be reported as a 
8.26 	donation in kind for the year in which the advance of credit was made.
8.27 	(j) The report must disclose the name and address of each political committee, 
8.28 	political fund, principal campaign committee, or party unit to which contributions have 
8.29 	been made that aggregate in excess of $100 within the year and the amount and date of 
8.30 	each contribution.
8.31 	(k) The report must disclose the sum of all contributions made by the reporting 
8.32 	entity during the reporting period.
8.33 	(l) The report must disclose the name and address of each individual or association 
8.34 	to whom noncampaign disbursements have been made that aggregate in excess of $100 
8.35 	within the year by or on behalf of the reporting entity and the amount, date, and purpose of 
8.36 	each noncampaign disbursement.
9.1 	(m) The report must disclose the sum of all noncampaign disbursements made 
9.2 	within the year by or on behalf of the reporting entity.
9.3 	(n) The report must disclose the name and address of a nonprofit corporation that 
9.4 	provides administrative assistance to a political committee or political fund as authorized 
9.5 	by section  211B.15, subdivision 17, the type of administrative assistance provided, and the 
9.6 	aggregate fair market value of each type of assistance provided to the political committee 
9.7 	or political fund during the reporting period. 

9.8 	Sec. 18. Minnesota Statutes 2004, section 10A.20, is amended by adding a subdivision 
9.9 	to read:
9.10 		Subd. 3b.Contents of report; conduit funds. A report by a conduit fund under 
9.11 	this section must disclose the sum of all contributions received by the fund and the sum 
9.12 	of all contributions made to each political committee, political fund, principal campaign 
9.13 	committee, or party unit and to all of them together during the reporting period. The 
9.14 	report must include the registration number of each recipient of contributions from the 
9.15 	conduit fund.

9.16 	Sec. 19. Minnesota Statutes 2004, section 10A.322, subdivision 1, is amended to read:
9.17 		Subdivision 1.Agreement by candidate. (a) As a condition of receiving a public 
9.18 	subsidy, a candidate must sign and file with the board a written agreement in which the 
9.19 	candidate agrees that the candidate will comply with sections  10A.25;  10A.27, subdivision 
9.20 	10;  10A.31, subdivision 7, paragraph (c); and  10A.324. 
9.21 	(b) Before the first day of filing for office, the board must forward agreement forms 
9.22 	to all filing officers. The board must also provide agreement forms to candidates on 
9.23 	request at any time. The candidate must file the agreement with the board ~~by September 1~~ 
9.24 	~~preceding the candidate's general election or a special election held at the general election~~
9.25 	not later than the day after the candidate files the affidavit of candidacy or nominating 
9.26 	petition for the office. An agreement may not be filed after that date. An agreement 
9.27 	once filed may not be rescinded.
9.28 	(c) The board must notify the commissioner of revenue of any agreement signed 
9.29 	under this subdivision.
9.30 	~~(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means~~ 
9.31 	~~of a special election and the filing period does not coincide with the filing period for the~~ 
9.32 	~~general election, a candidate may sign and submit a spending limit agreement not later~~ 
9.33 	~~than the day after the candidate files the affidavit of candidacy or nominating petition~~ 
9.34 	~~for the office.~~

10.1 	Sec. 20. Minnesota Statutes 2004, section 43A.38, is amended by adding a subdivision 
10.2 	to read:
10.3 		Subd. 10.Political appointments. An individual may not accept an appointment 
10.4 	to a position in the unclassified service in the executive branch, other than as the head 
10.5 	of a state department listed in section 15.06, within two years of having served as a 
10.6 	member of the legislature.

10.7 	Sec. 21. Minnesota Statutes 2004, section 211B.15, subdivision 16, is amended to read:
10.8 		Subd. 16.Employee political fund solicitation. Any solicitation of political 
10.9 	contributions by an employee must be in writing, informational and nonpartisan in nature, 
10.10 	and not promotional for any particular candidate or group of candidates. The solicitation 
10.11 	must consist only of a general request on behalf of ~~an independent political committee (~~ a 
10.12 	conduit fund~~)~~, as defined in section 10A.01, subdivision 10d, and must state that there is 
10.13 	no minimum contribution, that a contribution or lack thereof will in no way impact the 
10.14 	employee's employment, that the employee must direct the contribution to candidates of 
10.15 	the employee's choice, and that any response by the employee shall remain confidential 
10.16 	and shall not be directed to the employee's supervisors or managers. Questions from an 
10.17 	employee regarding a solicitation may be answered orally or in writing consistent with the 
10.18 	above requirements. Nothing in this subdivision authorizes a corporate donation of an 
10.19 	employee's time prohibited under subdivision 2.

10.20 	Sec. 22.  REPEALER.
 10.21 	Minnesota Statutes 2004, section 211B.15, subdivision 17, is repealed.

10.22 	Sec. 23. EFFECTIVE DATE.
 10.23 	This act is effective the day following final enactment.