Bill Text: MN HF1961 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Ethics in government; board duties modified, and economic disclosure and conflicts of interest requirements expanded.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Engrossed - Dead) 2014-04-28 - Referred to Rules and Administration [HF1961 Detail]
Download: Minnesota-2013-HF1961-Engrossed.html
1.2relating to ethics in government; modifying duties of board; expanding
1.3requirements relating to economic disclosure and conflicts of interest;
1.4amending Minnesota Statutes 2012, sections 10A.09, subdivision 5, by adding
1.5a subdivision; 13.607, subdivision 5; Minnesota Statutes 2013 Supplement,
1.6sections 10A.02, subdivision 10; 10A.07, subdivision 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2013 Supplement, section 10A.02, subdivision 10,
1.9is amended to read:
1.10 Subd. 10. Audits and investigations. Within limits of available resources, the
1.11boardmay must make audits and investigations, with respect to the requirements of this
1.12chapter. A final audit report completed under this chapter must contain the name of the
1.13primary board employee responsible for conducting the audit. The board may impose
1.14statutory civil penalties, and issue orders for compliance with respect to the requirements
1.15of this chapter and provisions under the board's jurisdiction pursuant to subdivision 11. In
1.16all matters relating to its official duties, the board has the power to require testimony under
1.17oath, to permit written statements to be given under oath, and to issue subpoenas and cause
1.18them to be served. If a person does not comply with a subpoena, the board may apply to
1.19the District Court of Ramsey County for issuance of an order compelling obedience to the
1.20subpoena. A person failing to obey the order is punishable by the court as for contempt.
1.21 Sec. 2. Minnesota Statutes 2013 Supplement, section 10A.07, subdivision 1, is
1.22amended to read:
1.23 Subdivision 1. Disclosure of potential conflicts. A public official or a local official
1.24elected to or appointed by a metropolitan governmental unit who in the discharge of official
2.1duties would be required to take an action or make a decision that would substantially
2.2affect the official's financial interests, the financial interests of the official's spouse, orthose
2.3 the financial interests of an associated business of the official or the official's spouse, unless
2.4the effect on the official or spouse is no greater than on other members of the official's or
2.5spouse's business classification, profession, or occupation, must take the following actions:
2.6(1) prepare a written statement describing the matter requiring action or decision and
2.7the nature of the potential conflict of interest;
2.8(2) deliver copies of the statement to the official's immediate superior, if any; and
2.9(3) if a member of the legislature or of the governing body of a metropolitan
2.10governmental unit, deliver a copy of the statement to the presiding officer of the body
2.11of service.
2.12If a potential conflict of interest presents itself and there is insufficient time to
2.13comply with clauses (1) to (3), the public or local official must orally inform the superior
2.14or the official body of service or committee of the body of the potential conflict.
2.15 Sec. 3. Minnesota Statutes 2012, section 10A.09, subdivision 5, is amended to read:
2.16 Subd. 5. Form. (a) A statement of economic interest required by this section must
2.17be on a form prescribed by the board. The individual filing must provide the following
2.18information:
2.19(1) name, address, occupation, and principal place of business;
2.20(2) the name of each associated business and the nature of that association;
2.21(3) a listing of all real property within the state, excluding homestead property, in
2.22which the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer
2.23or seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
2.24$2,500; or (ii) an option to buy, if the property has a fair market value of $50,000 or more;
2.25(4) a listing of all real property within the state in which a partnership of which the
2.26individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
2.27buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
2.28the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
2.29has a fair market value of $50,000 or more. A listing under clause (3) or (4) must indicate
2.30the street address and the municipality or the section, township, range and approximate
2.31acreage, whichever applies, and the county in which the property is located;and
2.32(5) a listing of any investments, ownership, or interests in property connected with
2.33pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
2.34the individual directly or indirectly holds a partial or full interest or an immediate family
2.35member holds a partial or full interest.;
3.1(6) a listing of the principal business or professional activity category of each
3.2business from which the individual receives more than $50 in any month as an employee,
3.3if the individual has an ownership interest of 25 percent or more in the business; and
3.4(7) a listing of each principal business or professional activity category from which
3.5the individual received compensation of more than $2,500 in the past 12 months as an
3.6independent contractor.
3.7(b) The business or professional categories for purposes of paragraph (a), clauses (6)
3.8and (7) must be the general topic headings used by the federal Internal Revenue Service
3.9for purposes of reporting self-employment income on Schedule C. This paragraph does
3.10not require an individual to report any specific code number from that schedule. Any
3.11additional principal business or professional activity category may only be adopted if
3.12the category is enacted by law.
3.13EFFECTIVE DATE.This section is effective the day following final enactment for
3.14a person who becomes a public official on or after that date, and for a person who files an
3.15affidavit of candidacy or a petition to appear on a ballot that is subject to section 10A.09.
3.16For a person who is a public official before the effective date of this section, this section is
3.17effective for supplementary statements due April 15, 2015.
3.18 Sec. 4. Minnesota Statutes 2012, section 10A.09, is amended by adding a subdivision
3.19to read:
3.20 Subd. 10. Board audits; data classification. (a) In conducting an audit of data
3.21reported under this section, the board may require an individual to disclose the underlying
3.22data on which the statement is based.
3.23(b) All data related to an audit, including the existence of the audit, are classified
3.24as confidential data, as defined in section 13.02, subdivision 3. A member, employee, or
3.25agent of the board must not disclose information obtained by the member, employee, or
3.26agent concerning the audit except as required to carry out the audit or take action in the
3.27matter. Upon completion of the audit, the board's final audit report is public. The final
3.28audit report must contain the name of the individual subject to the audit, a description of
3.29any audit findings, a description of any responses provided by the individual who was
3.30subject to the audit, and a description of the manner in which any findings were resolved.
3.31 Sec. 5. Minnesota Statutes 2012, section 13.607, subdivision 5, is amended to read:
3.32 Subd. 5. Statements of economic interest. (a) Disclosure of statements of
3.33economic interest filed by local officials is governed by section10A.09, subdivision 6a .
4.1(b) Data related to audits of statements of economic interest are governed by section
4.210A.09, subdivision 10.
1.3requirements relating to economic disclosure and conflicts of interest;
1.4amending Minnesota Statutes 2012, sections 10A.09, subdivision 5, by adding
1.5a subdivision; 13.607, subdivision 5; Minnesota Statutes 2013 Supplement,
1.6sections 10A.02, subdivision 10; 10A.07, subdivision 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2013 Supplement, section 10A.02, subdivision 10,
1.9is amended to read:
1.10 Subd. 10. Audits and investigations. Within limits of available resources, the
1.11board
1.12chapter. A final audit report completed under this chapter must contain the name of the
1.13primary board employee responsible for conducting the audit. The board may impose
1.14statutory civil penalties, and issue orders for compliance with respect to the requirements
1.15of this chapter and provisions under the board's jurisdiction pursuant to subdivision 11. In
1.16all matters relating to its official duties, the board has the power to require testimony under
1.17oath, to permit written statements to be given under oath, and to issue subpoenas and cause
1.18them to be served. If a person does not comply with a subpoena, the board may apply to
1.19the District Court of Ramsey County for issuance of an order compelling obedience to the
1.20subpoena. A person failing to obey the order is punishable by the court as for contempt.
1.21 Sec. 2. Minnesota Statutes 2013 Supplement, section 10A.07, subdivision 1, is
1.22amended to read:
1.23 Subdivision 1. Disclosure of potential conflicts. A public official or a local official
1.24elected to or appointed by a metropolitan governmental unit who in the discharge of official
2.1duties would be required to take an action or make a decision that would substantially
2.2affect the official's financial interests, the financial interests of the official's spouse, or
2.3 the financial interests of an associated business of the official or the official's spouse, unless
2.4the effect on the official or spouse is no greater than on other members of the official's or
2.5spouse's business classification, profession, or occupation, must take the following actions:
2.6(1) prepare a written statement describing the matter requiring action or decision and
2.7the nature of the potential conflict of interest;
2.8(2) deliver copies of the statement to the official's immediate superior, if any; and
2.9(3) if a member of the legislature or of the governing body of a metropolitan
2.10governmental unit, deliver a copy of the statement to the presiding officer of the body
2.11of service.
2.12If a potential conflict of interest presents itself and there is insufficient time to
2.13comply with clauses (1) to (3), the public or local official must orally inform the superior
2.14or the official body of service or committee of the body of the potential conflict.
2.15 Sec. 3. Minnesota Statutes 2012, section 10A.09, subdivision 5, is amended to read:
2.16 Subd. 5. Form. (a) A statement of economic interest required by this section must
2.17be on a form prescribed by the board. The individual filing must provide the following
2.18information:
2.19(1) name, address, occupation, and principal place of business;
2.20(2) the name of each associated business and the nature of that association;
2.21(3) a listing of all real property within the state, excluding homestead property, in
2.22which the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer
2.23or seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
2.24$2,500; or (ii) an option to buy, if the property has a fair market value of $50,000 or more;
2.25(4) a listing of all real property within the state in which a partnership of which the
2.26individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
2.27buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
2.28the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
2.29has a fair market value of $50,000 or more. A listing under clause (3) or (4) must indicate
2.30the street address and the municipality or the section, township, range and approximate
2.31acreage, whichever applies, and the county in which the property is located;
2.32(5) a listing of any investments, ownership, or interests in property connected with
2.33pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
2.34the individual directly or indirectly holds a partial or full interest or an immediate family
2.35member holds a partial or full interest
3.1(6) a listing of the principal business or professional activity category of each
3.2business from which the individual receives more than $50 in any month as an employee,
3.3if the individual has an ownership interest of 25 percent or more in the business; and
3.4(7) a listing of each principal business or professional activity category from which
3.5the individual received compensation of more than $2,500 in the past 12 months as an
3.6independent contractor.
3.7(b) The business or professional categories for purposes of paragraph (a), clauses (6)
3.8and (7) must be the general topic headings used by the federal Internal Revenue Service
3.9for purposes of reporting self-employment income on Schedule C. This paragraph does
3.10not require an individual to report any specific code number from that schedule. Any
3.11additional principal business or professional activity category may only be adopted if
3.12the category is enacted by law.
3.13EFFECTIVE DATE.This section is effective the day following final enactment for
3.14a person who becomes a public official on or after that date, and for a person who files an
3.15affidavit of candidacy or a petition to appear on a ballot that is subject to section 10A.09.
3.16For a person who is a public official before the effective date of this section, this section is
3.17effective for supplementary statements due April 15, 2015.
3.18 Sec. 4. Minnesota Statutes 2012, section 10A.09, is amended by adding a subdivision
3.19to read:
3.20 Subd. 10. Board audits; data classification. (a) In conducting an audit of data
3.21reported under this section, the board may require an individual to disclose the underlying
3.22data on which the statement is based.
3.23(b) All data related to an audit, including the existence of the audit, are classified
3.24as confidential data, as defined in section 13.02, subdivision 3. A member, employee, or
3.25agent of the board must not disclose information obtained by the member, employee, or
3.26agent concerning the audit except as required to carry out the audit or take action in the
3.27matter. Upon completion of the audit, the board's final audit report is public. The final
3.28audit report must contain the name of the individual subject to the audit, a description of
3.29any audit findings, a description of any responses provided by the individual who was
3.30subject to the audit, and a description of the manner in which any findings were resolved.
3.31 Sec. 5. Minnesota Statutes 2012, section 13.607, subdivision 5, is amended to read:
3.32 Subd. 5. Statements of economic interest. (a) Disclosure of statements of
3.33economic interest filed by local officials is governed by section
4.1(b) Data related to audits of statements of economic interest are governed by section
4.210A.09, subdivision 10.
