Campaign Finance

Oregon: “The City’s Public Campaign Financing Program Allowed Candidates with Little Support to Snag Taxpayer Dollars” by Sophie Peel for Willamette Week

Ethics

California: “Assessor Reports $1M Behested Payment, Biggest Charitable Donation Made at a Local Elected Official’s Request” by Jeff McDonald (San Diego Union-Tribune) for MSN

National: “Trump Transition Team Ethics Pledge Appears to Exclude President-Elect” by Betsy Klein, Steve Contorno, and Arlette Saenz (CNN) for MSN

Florida: “Tickets to Master’s Tournament Trigger Feud in Hillsborough County Politics” by Jack Evans and Justin Garcia (Tampa Bay Times) for MSN

Indiana: “Nonprofit Braun Transition Group Follows Former Governors’ Model” by Leslie Bonilla Muñiz (Indiana Capital Chronicle) for Yahoo News

Legislative Issues

National: “Supreme Court to Examine Power of Congress to Delegate Authority” by Justin Jouvenal (Washington Post) for MSN

Lobbying

National: “As His Power Grows, D.C. Wonders: How do you lobby a man like Elon Musk?” by Cat Zakrzewski, Faiz Siddiqui, and Pranshu Verma (Washington Post) for MSN

New York: “N.Y. Ethics Commission Faces New Constitutional Challenge” by Brendan Lyons for Albany Times Union

On November 21, Quebec’s Chief Electoral Officer Jean-François Blanchet submitted to the province’s National Assembly a report of recommendations containing 30 proposals for improvements to the Election Act.

The stated goal of the report, entitled “For a New Vision of the Election Law,” is to strengthen the province’s election law’s fundamental principles: transparency, fairness, and integrity.

Notably, the report recommends fixed by-elections dates.

Among the other recommendations of Elections Quebec are requiring political parties to account for their pre-election expenses, extending this reporting requirement to any organization or person not acting on behalf of a candidate or a party, and banning government advertising and announcements as an election is approached.

The report contends the current guidelines limiting government communications in the run-up to an election need clarification to ensure more fairness between political parties from one election to the next.

Additionally, the report proposes requiring digital platforms to keep a register of the paid election and political ads they broadcast, similar to requirements in effect during federal elections.

Q: Since Minnesota updated their lobbying law and the changes went into effect at the start of 2024, how will the changes practically affect how lobbyists register and file reports?

A: Minnesota passed legislation affecting lobbying registration and reporting that went into effect on January 1, 2024. To correspond with the changes the Campaign Finance Board (CFB) has updated their lobbyist registration, termination statement, and reporting forms.

Lobbyists should be aware the registration threshold has increased from $250 to more than $3,000 for individuals who spend personal funds to influence government action. Calculating the threshold does not include an individual’s own traveling expenses and membership dues. While the increased threshold allows individuals to track their activities until they reach the higher amount the law expanded the scope of local government lobbying which could lead to more activities being included in determining your registration requirements.

The scope of local government lobbying was expanded by amending the definition of lobbyist to replace all references to metropolitan governmental unit with political subdivision. A political subdivision includes the metropolitan council, a metropolitan agency, including the Metropolitan Parks and Open Space Commission, Metropolitan Airports Commission, and Metropolitan Sports Facilities Commission, and a municipality, including a county, town, city, school district or other municipal corporation or political subdivision of the state authorized by law to enter into contracts. Communication with local officials of a political subdivision will need to be tracked and included in calculating your threshold. The new form released by CFB reflects these changes. Lobbyists will also be required to list the general lobbying categories of interest on registrations.

On the reporting and termination forms, lobbyists will no longer be required to report disbursements. Instead, individuals must affirm whether legislative, administrative, or local governmental action occurred during the reporting period. For each type of governmental action, the lobbyist must include at least one general lobbying category and up to four specific subjects of interest lobbied during the reporting period. For administrative actions, individuals must also include the agency lobbied and revisor number if applicable. Lobbyists must continue to report the amount and nature of each gift, item, or benefit $5 or more, given or paid to any public official, an employee of the Legislature, or a local official, by the lobbyist, an employer, or employee of the lobbyist, and each original source of money in excess of $500 in any year used for the purpose of lobbying.

While the CFB has not released an updated form for the annual report, the new lobbying law requires the total amount spent on each lobbying type during a calendar year to be rounded to the nearest $9,000 instead of the current $20,000. We expect the CFB to release a new form closer to the annual reporting due date.

The information from this response can easily be found on our website in the Lobbying Compliance section of the United States Compliance Laws publication.  Please do not hesitate to contact us if you have questions.

A special election for Senate District 45 will take place on the day of the general election, November 5.

Sen. Kelly Morrison, Assistant Majority Leader, announced Thursday she is resigning her seat to launch her bid to represent Minnesota’s 3rd Congressional District.

The vacancy triggers a special election putting Democrats’ one-seat Senate majority in play this November.

Lawmakers passed a bill modifying the restrictions and penalties for using deep fakes to influence elections before adjourning May 20.

Effective August 1, House File 4772 changes the standard from reasonably knowing to acting with reckless disregard about whether the item being disseminated is a deep fake.

The bill also changes the applicable timeframe for violations to within 90 days before a political party nominating convention or after the start of absentee voting prior to a presidential primary or state or local primary or general election.

Penalties for candidates using deep fakes include forfeiting their nomination or office and disqualification from being appointed to that office or any other office.

The U.S. District Court granted a motion for a preliminary injunction in Minnesota Chamber of Commerce v. Choi (0:23-cv-02015), preventing the Minnesota Campaign Finance and Public Disclosure Board from enforcing a bill restricting political activities by foreign-influenced corporations.

House File 3 was to be effective January 1, 2024, and would require a corporation making a contribution to a ballot question or an independent expenditure to submit a certification to the board that it was not a foreign-influenced corporation as of the date the contribution or expenditure was made.

The bill defines a foreign-influenced corporation as one for which a single foreign investor owns 1% or more; two or more foreign investors own 5% or more; or a foreign investor participates directly or indirectly in the corporation’s decision-making process with respect to the corporation’s political activities in the United States.

The Campaign Finance and Public Disclosure Board issued draft rule language staff considers to be potentially controversial.

The language will be considered by the board’s three-member rulemaking committee at one or more public meetings to be announced at a later date.

Interested parties will have an opportunity to comment on the draft rule language.

Once it is available staff will also release draft rule language intended to implement changes made by the Legislature in 2023 to statutes governing lobbyist regulation and reporting.

Information related to the rulemaking process, including how to sign up for the rulemaking notice list, the dates of any scheduled rulemaking committee meetings, copies of official documents, copies of formal comments received by the board, and draft rules, will be posted on the board’s rulemaking docket webpage at cfb.mn.gov/citizen-resources/the-board/statutes-and-rules/rulemaking-docket.

The Campaign Finance and Public Disclosure Board issued draft rule language staff considers to be technical or noncontroversial.

The language will be considered by the board’s three-member rulemaking committee at one or more public meetings to be announced at a later date.

Interested parties will have an opportunity to comment on the draft rule language.

Once it is available staff will also release draft rule language considered to be potentially controversial, including language intended to implement changes made by the Legislature in 2023 to statutes governing lobbyist regulation and reporting.

Information related to the rulemaking process will be posted on the board’s rulemaking docket webpage at cfb.mn.gov/citizen-resources/the-board/statutes-and-rules/rulemaking-docket. 

This information will include how to sign up for the rulemaking notice list, the dates of any scheduled rulemaking committee meetings, copies of official documents, copies of formal comments received by the Board, and draft rules.

Gov. Tim Walz issued a writ of special election to fill the vacant seat in House District 52B following the resignation of State Representative Ruth Richardson.

The special election will be held on December 5.

A special primary, if necessary, will be held on November 16.

This special election date allows for the new representative to be seated when the legislative session convenes on Tuesday, February 12, 2024.

The Campaign Finance and Public Disclosure Board issued a Request for Comments regarding the possible adoption, amendment, and repeal of rules governing campaign finance regulation and reporting; lobbyist regulation and reporting; audits and investigations; and other topics, in Minnesota Rules, chapters 4501 through 4525.

The board may consider other rule topics that arise during the rulemaking process.

Meetings will be open to the public and interested parties will have the opportunity to comment on the proposed rule topics and language.

Information related to the rulemaking, including how to comment, how to sign up for the rulemaking notice list, the dates of upcoming subcommittee meetings, copies of official documents, and draft rules will be posted at cfb.mn.gov/citizen-resources/the-board/statutes-and-rules/rulemaking-docket/.

The 93rd session of the Minnesota Legislature adjourned sine die on May 22.

Lawmakers passed House File 3, a bill restricting political activities by foreign influenced corporations, and requiring corporations making political contributions to file certifications.

The bill requires any corporation making a contribution to a ballot question or an independent expenditure to submit a certification to the Campaign Finance and Public Disclosure Board that it was not a foreign-influenced corporation as of the date the contribution or expenditure was made.

The bill also broadens the definition of expressly advocating to include certain types of political communications, even if they do not use words or phrases of express advocacy, such as “vote for” or “vote against.”

Expressly advocating is used to identify certain types of independent expenditures that require disclosure and reporting to the Campaign Finance and Public Disclosure Board.

The bill becomes effective January 1, 2024.

The Minnesota Legislature is considering two bills proposing an overhaul to the lobbyist reporting requirements.

Senate File 1636 requires lobbyist principals to report the total amount, spent by the principal during the preceding calendar year on each of four types of lobbying:

1. Lobbying to influence legislative action
2. Lobbying to influence administrative action
3. Lobbying to influence official action of political subdivisions
4. Lobbying to influence administrative action in cases of rate setting, power plant and powerline siting, with no rounding of the amounts, so lobbyist principals will be reporting actual amount spent for each category of lobbying.

House File 1723 requires lobbyist principals to report the total amount, rounded to the nearest $10,000 spent by the principal during the preceding calendar year on each of four types of lobbying:

1. Lobbying to influence legislative action
2. Lobbying to influence administrative action
3. Lobbying to influence official action of political subdivisions
4. Lobbying to influence administrative action in cases of rate setting, power plant and powerline siting, and granting of certificates of need for a large energy facility.

Currently principals are only required to report the total amount, rounded to the nearest $20,000, for all categories.

The 92nd session of the Minnesota Legislature adjourned sine die on May 23 without passing most of the tax and spending bills.

A special session is expected to be called by the governor in hopes of reaching an agreement on several funding bills that also contain key policy provisions.

The two-year biennial budget was passed last year, funding state operations until June 30, 2023, so there is no risk of a government shutdown.

U.S. Rep. Jim Hagedorn died at age 59 after a battle with cancer.

Minnesota Gov. Tim Walz is expected to call a special election for District 1 on August 9, the date of the statewide primary elections.

Secretary of State Steve Simon said the filing period must end by March 15 and will be open for at least two weeks.

A special primary will be held May 24.

The special election will take place within the current district boundaries, not those established in the new state maps announced this week, and the winner of the special election will serve the remainder of Hagedorn’s term.

The November race for the seat will run on the standard election-year timetable within the newly redistricted boundaries for the term beginning January 2023.