STATE OF MINNESOTACAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD.........
October 4, 2017
Room 225
Minnesota Judicial Center.........
MINUTESThe meeting was called to order by Chair Rosen.
Members present: Flynn, Haugen, Leppik, Moilanen, Rosen, Swanson
Others present: Sigurdson, Goldsmith, Pope, staff; Christie Eller, counsel
MINUTES (July 31, 2017)
After discussion, the following motion was made:Member Leppik’s motion:

To approve the July 31, 2017, minutes as drafted.

Vote on motion:

Unanimously passed (Haugen abstained).

CHAIR’S REPORT
A. Meeting schedule
The next Board meeting is scheduled for 10 a.m. on Wednesday, November 1, 2017.
Before moving to the next agenda item, Chair Rosen welcomed Member Haugen to the Board.
B.

Report of nomination committee – vice chair for remainder of 2017, officers for 2018

Chair Rosen reported that the nomination committee, consisting of himself and Member Swanson had
met. Member Swanson said that the committee recommended that Member Flynn be named vice chairfor the remainder of 2017 and that for 2018, Member Flynn be named chair and Member Leppik be
named vice chair.
After discussion, the following motions were made:Member Swanson’s motion:

To approve the nomination committee’s recommendationthat Member Flynn be named as vice chair for theremainder of 2017.

Vote on motion:

Unanimously passed.

Page - 2 Minutes
October 4, 2017
Member Swanson’s motion:

To approve the nomination committee’s recommendationthat for 2018, Member Flynn be named as chair andMember Leppik be named as vice chair.

Vote on motion:

Unanimously passed.

EXECUTIVE DIRECTOR REPORT
Mr. Sigurdson presented members with a memorandum regarding this matter that is attached to andmade a part of these minutes. Mr. Sigurdson told members that he had responded to a letter from themayor of the City of Columbus that had also been sent to every legislator. The mayor’s letter statedthat the level of financial disclosure required of watershed management organization members was
unreasonable and asked for statutory changes in this area. Mr. Sigurdson said in addition toaddressing the mayor’s concerns, he had addressed questions from legislators prompted by the letter.
Mr. Sigurdson next informed members that the Department of Administration had approved thereclassification of the vacant programs assistant position to a professional position and that the newposition had been posted. Mr. Sigurdson said that the new position would be responsible for on-line
training efforts, keeping the content of the new website up-to-date, and administration of the economic
interest program.
ADMINISTRATIVE RULES UPDATE
Mr. Sigurdson and Ms. Pope presented members with a memorandum regarding this matter that is
attached to and made a part of these minutes. Mr. Sigurdson reviewed the history of the rulemaking
process and the recent legislative hearing held on the proposed rules.
Nick Harper, civic engagement manager of the League of Women Voters, then addressed the Board.
Mr. Harper stated that the League supported the proposed rules and urged the Board to pursue theiradoption.
George Beck, chair of Minnesota Citizens for Clean Elections, also addressed the Board. Mr. Becksaid that his organization supported the proposed rules. Mr. Beck stated that the proposed rules fillgaps in the statutes and help regulated parties to avoid violations. Mr. Beck provided a written
memorandum to members that is attached to and made a part of these minutes.
Mr. Sigurdson then reviewed the proposed disclaimer and non-expenditure rules dated 9/22/2017,
which are attached to and made a part of these minutes.
After discussion, the following motions were made:Member Leppik’s motion:

To amend proposed part 4503.1900 by (1) deleting thephrase “in opposition to a candidate” from the title ofsubpart 1 and the first sentence of this subpart; (2) deletingthe phrase “in opposition to . . . (insert candidate name)”-2-Page - 3 Minutes
October 4, 2017from the required disclaimer language in subpart 1; (3)deleting subpart 2; and (4) deleting subpart 3.
Vote on motion:

Unanimously passed.

Member Leppik’s motion:

To approve the proposed disclaimer and non-expenditurerules dated 9/22/2017, as amended.

Vote on motion:

Unanimously passed.

Mr. Sigurdson then reviewed the proposed expenditure rules dated 9/22/2017, which are attached toand made a part of these minutes.
After discussion, the following motion was made:Member Flynn’s motion:

To approve the proposed expenditure rules dated
9/22/2017, as drafted.

Vote on motion:

Unanimously passed.

Mr. Sigurdson then reviewed the proposed coordination rules dated 9/22/2017, which are attached toand made a part of these minutes.
After discussion, the following motions were made:Member Rosen’s motion:

To amend proposed part 4503.2000, subpart 10, by adding
the word “intimate” before the word “interpersonal.”

Vote on motion:

Unanimously passed.

Member Swanson’s motion:

To amend proposed part 4503.2000, subpart 11, item A,
by adding the phrase “of the spender” to the end of the first
sentence in item A and after “general treasury money” insubitem 2.

Vote on motion:

Unanimously passed.

Member Moilanen’s motion:

To approve the proposed coordination rules dated
9/22/2017, as amended.

Vote on motion:

Unanimously passed.

Member Rosen’s motion:

To amend the proposed resolution authorizing publicationof a notice of intent to adopt rules as follows:-3-

Page - 4 Minutes
October 4, 2017
2. If there are fewer than 25 outstanding hearing requests, the executive director of theCampaign Finance and Public Disclosure Board is authorized to sign the Order Adopting theRules and to do anything else needed to adopt these rules without a hearing submit theserules to the Office of Administrative Hearings for final review.
3. If there are 25 or more outstanding hearing requests, the executive director of the Campaign
Finance and Public Disclosure Board is authorized to act as the Board’s representative at
the hearing and to do anything else needed to adopt these rules with a hearing. This
includes authority to sign the Order Adopting Rules if there are no modifications to the rules
other than modifications approved by the Board submit these rules to the Office ofAdministrative Hearings for final review.
4. The proposed rules cannot become effective without further action by the Board.
Vote on motion:

Unanimously passed.

Member Moilanen’s motion:

To adopt the following resolution:

1. The executive director of the Campaign Finance and Public Disclosure Board is authorized
to sign and to give the Notice of the Board’s Intent to Adopt Rules using Alternate Notices ofwhether a hearing will be held in the proposed rule drafts dated 9/22/2017, identified asMinnesota Rules, chapters 4501 through 4525, with any modifications approved by the
Board at its October 4, 2017, meeting. The executive director must give this notice to all
persons who have registered their names with the Board for that purpose. The executive
director must also publish the notice in the State Register. Furthermore, the executive
director is authorized to do anything else needed to complete this notice including modifying
the proposed rules as needed to obtain the approval of the revisor of statutes, thegovernor’s office, and the office of administrative hearings.
2. If there are fewer than 25 outstanding hearing requests, the executive director of theCampaign Finance and Public Disclosure Board is authorized to do anything else needed tosubmit these rules to the Office of Administrative Hearings for final review.
3. If there are 25 or more outstanding hearing requests, the executive director of the Campaign
Finance and Public Disclosure Board is authorized to act as the Board’s representative at
the hearing and to do anything else needed to submit these rules to the Office ofAdministrative Hearings for final review.
4. The proposed rules cannot become effective without further action by the Board.
Vote on motion:

Unanimously passed.

ENFORCEMENT REPORTThe matters on the enforcement report were postponed until the next meeting.

-4-

Page - 5 Minutes
October 4, 2017
ADVISORY OPINION REQUEST 444
Mr. Sigurdson presented members with a memorandum regarding this matter that is attached to andmade a part of these minutes. Mr. Sigurdson told members that the requester had not consented tomaking the request public. Therefore a public version of the draft opinion had been prepared that did
not identify the requester.
Mr. Sigurdson said that the advisory opinion concerned whether a wind project siting proceeding before
the Public Utilities Commission (PUC) is an administrative action that subjects an individual attempting
to influence the PUC in that matter to the lobbyist registration requirements in Chapter 10A. Mr.
Sigurdson said that in a 2012 enforcement action, the Board had decided that a wind project siting
proceeding was an administrative action under Chapter 10A. Mr. Sigurdson stated that the proposedadvisory opinion examined the decision in the enforcement action and also concluded that a windproject siting proceeding is an administrative action under Chapter 10A. Consequently, individuals
attempting to influence that action are subject to the lobbyist registration and reporting requirements in
Chapter 10A.
After discussion, the following motions were made:Member Swanson’s motion:

To amend the proposed advisory opinion by deleting thefirst sentence in the last paragraph.

Vote on motion:

Unanimously passed.

Member Swanson’s motion:

To approve the proposed advisory opinion as amended.

Vote on motion:

Unanimously passed.

LEGISLATIVE RECOMMENDATIONS
Mr. Sigurdson presented members with a memorandum regarding this matter that is attached to andmade a part of these minutes.
After discussion, the following motion was made:Member Flynn’s motion:

To direct staff to develop a list of possible subjects forlegislative proposals for the November meeting.

Vote on motion:

Unanimously passed.

LEGAL COUNSEL’S REPORT
Ms. Eller had nothing to add to the legal report that is attached to and made a part of these minutes.
OTHER BUSINESSThere was no other business to report.

-5-Page - 6 Minutes
October 4, 2017
EXECUTIVE SESSION
The Chair recessed the regular session of the meeting and called to order the executive session. Upon
recess of the executive session, the regular session of the meeting was called back to order and the
Chair had nothing to report into regular session.
There being no other business, the meeting was adjourned by the chair.
Respectfully submitted,

Jeff Sigurdson
Executive Director
Attachments:
Memorandum regarding executive director’s report
Memorandum regarding administrative rules
Proposed disclaimer and non-expenditure rules dated 9/22/2017
Proposed expenditure rules dated 9/22/2017
Proposed coordination rules dated 9/22/2017
Memorandum from George Beck, Minnesota Citizens for Clean Elections
Memorandum regarding advisory opinion request 444
Draft advisory opinion 444 – public version
Memorandum regarding legislative recommendations
Legal report-6-Minnesota

Campaign Finance andPublic Disclosure Board
Date: September 27, 2017
To:

Board Members

From: Jeff Sigurdson, Executive Director
Re:

Telephone: 651-539-1189

Executive Director’s Report – Board Operations

Correspondence
On September 15, 2017, I received the attached letter and resolution from David Povolny,
Mayor of the City of Columbus. In his letter, Mayor Povolny states that the economic interest
statement disclosure required of a public official who serves on a watershed management
organization is unreasonable. The resolution calls for a change in state statute to reduce thedisclosure required. The City of Columbus sent the letter and resolution to all members of thelegislature.
I have addressed questions from legislators regarding Mayor Povolny’s letter, and have sent theattached reply to Mayor Povolny.
Personnel
The Deptartment of Administration has approved the reclassification of the program assistantposition that became vacant earlier this year. The position is now a professional classificationthat will be responsible for the day-to-day management of the Board’s economic interest
disclosure program.
Additionally, the position will produce and maintain the Board’s web-based training material andeducational videos for all programs. The position will also support the Board’s namestandardization initiative; including the use of standardized names in web-based applications.
Finally, the position will help move legacy data to the new website, and generally help keep the
Board’s website accurate and up-to-date.
The position is scheduled to be posted on the state’s job listing website on October 2, 2017.

Attachments
Letter from Mayor Povolny, Resolution from the City of Columbus
Letter from Jeff Sigurdson to Mayor Povolny

Campaign Finance andPublic Disclosure Board
190 Centennial Building . 658 Cedar Street . St. Paul, MN 55155-1603

DATE:

September 27, 2017TO:

Board Members

FROM:

Jeff Sigurdson, Executive Director
Jodi Pope, Legal Analyst

SUBJECT:

Administrative rule update

TELEPHONE:

651-539-1189
651-539-1183

The rule committee held its last meeting on Wednesday, September 20, 2017. Four members of the
public attended the meeting, and all three sets of proposed rule language were discussed. The rulecommittee determined that the draft rules were ready for presentation to the Board at the Octobermeeting.
Public and legislative interest in the possible rules remains high. The rule committee received andconsidered fifteen written comments (often with supporting documentation) from nine different individuals
during the development of the proposed language. The written comments have been combined into asingle document in order received that is attached to this memo. The comments were extremely usefulto the rules committee, with several suggested changes incorporated into the draft language.
On Monday, September 25, 2017, the House Government Operations and Elections Committee (chaired
by Rep. O’Driscoll) and the Senate State Government Finance and Policy and Elections Committee(chaired by Sen. Kiffmeyer) held a joint hearing regarding the draft rules. Mr. Sigurdson presented thedraft rules and answered questions. Members Leppik and Moilanen attended the hearing in order to heardirectly the concerns and questions of the legislators.
The hearing was recorded and is available online at the location referenced in the attachments. Members
may not have time to listen to the entire hearing, which lasted more than two hours. However, at the endof the hearing Rep. O’Driscoll and Sen. Kiffmeyer each made closing statements in which theyexpressed their concerns with some sections of the rules, and reiterated the offer to work with the Boardon legislation that would include some if not all of the proposed rule language. The statements of Rep.
O’Driscoll and Sen. Kiffmeyer start at the 2:00:30 mark of the recording. The original offer to work with
the Board was expressed in a letter from Sen. Kiffmeyer and Rep. O’Driscoll dated August 31, 2017.
Next Steps
The full Board will now discuss and approve some, all, or none of the language for the proposed rule
developed by the rule committee. The draft language is grouped roughly by topic area into three sets.
The sets are titled disclaimer and non-expenditure provisions, expenditure and noncampaign
disbursement provisions, and coordination rules. Staff will quickly review the provisions of each set atthe October meeting. After incorporating any changes that members may want to the proposed
language, staff suggests a separate Board vote on each set of proposed rules to determine if the Board
wishes to go forward with the language as proposed administrative rules.

1

Although Members Moilanen and Leppik have dedicated a lot of time and energy in working with staff on
developing the proposed language, the Board is actually not very far into the process of adopting rules.
The attached chart on the administrative rule process shows the various steps. At this point, the Board
has only published and concluded a request for comments. Assuming that the Board wishes to move
forward on administrative rules, the Board will need to adopt the attached resolution giving the executive
director the authority to take the steps necessary to publish the notice of intent to adopt rules.
Before the notice and draft rules actually can be published, however, staff must prepare a statement ofneed and reasonableness (SONAR), the Revisor of Statutes must approve the form of the draft rules, theGovernor’s office must sign off on the proceeding, and the Office of Administrative Hearings must
approve a notice plan. These steps are estimated to take a minimum of six weeks.
Attachments
Public comments on proposed rules
Legislative hearing on proposed rules:
http://www.house.leg.state.mn.us/cmte/archiveAV/cmtearchives.aspx?comm=90011&ls_year=90
Letter from Senator Kiffmeyer and Representative O’Driscoll, dated August 31, 2017
Chart on rulemaking process
Proposed disclaimer and non-expenditure rules 9-22-2017
Proposed expenditure and noncampaign disbursement rules 9-22-2017
Proposed coordination rules 9-22-2017
Draft resolution authorizing publication of notice of intent to adopt rules29/22/2017
Draft disclaimer and non-expenditure provisions
4501.0100 DEFINITIONS

Commented [PJ(1]: This definition is needed for thedisclaimer section below.

[For text of subparts 1 – 3, see M.R.]
Supb. 3a. Campaign material. “Campaign material” has the meaning given this term in
Minnesota Statutes section 211B.01, subdivision 2.
[For text of subparts 4-9, see M.R.]

4501.0500 FILINGS, SUBMISSIONS, AND DISCLOSURES.
[For text of subpart 1, see M.R.]
Subp. 1a. Completion of filing. A filing with the board is complete upon:
A. receipt in the board office of the document being filed, bearing the original signatureof the person responsible for filing the document;

Commented [PJ(2]: This provision is necessary to correct areference to a rule part that was moved to statute during thelast legislative session.

B. receipt of a facsimile transmission of the document, subject to subpart 2 Minnesota
Statutes section 10A.025, subdivision 1a;
C. the postmark date of a first class or certified mailing of the document being filed,properly addressed to the board at its current address; or
D. the successful submission of an electronic file to the board.
[For text of subparts 3-4, see M.R.]
4501.0200 SECURITIES.
Subpart 1. Items which are securities. For purposes of Minnesota Statutes chapter 10A andMinnesota Rules chapters 4501 through 4525, securities include any stock, share, bond,warrant, option, pledge, note, mortgage, annuity, debenture, lease, or commercial paper, in any
corporation, partnership, mutual fund, trust, or other association.
Subp. 2. Items which are not securities. For purposes of Minnesota Statutes chapter 10A andMinnesota Rules chapters 4501 through 4525, securities do not include deposits in a savings
account, certificates of deposit, money market certificates, treasury bills, bonds or notes,
dividends from securities, shares in a mutual fund or exchange traded fund, or holdings in adefined benefit pension or retirement plan.
Subp. 3. Holder of securities. A "holder of securities" is an individual having an ownershipinterest in a security, or who is the trustee or beneficiary of a trust having an ownership in asecurity. An individual owning shares in a mutual fund does not have an ownership interest inunderlying securities owned by the fund. An individual owning an annuity does not have anownership interest in underlying securities owned by the annuity.
Subp. 4. Valuation of securities. The value of a security is its fair market value. For
securities traded on national exchanges, the fair market value is the closing bid price for the1

Commented [PJ(3]: This amendment is intended to remove
mutual and exchange traded funds from the list of securities
that must be disclosed on statements of economic interestand to add annuities to that list. Mutual and exchange tradedfunds are being removed because those funds typically are
too large to be affected by one official’s actions. Annuities arebeing added because those investments are regulated by thestate and therefore could create potential conflicts of interestfor some officials.

Commented [PJ(4]: There has been much confusion about
whether “retirement plan” includes 401(k)s or other IRAs.
Consequently, language has been added specifying that only
defined benefit pension plans are excluded from the definitionof securities. Defined benefit plans are excluded because
beneficiaries of those plans do not have control over theinvestments held by the. Beneficiaries of 401(k) and other
IRA plans, however, can direct the investments held by thoseplans.
Commented [PJ(5]: This amendment has been added
because it is the fact that the official owns an annuity that
could create a potential conflict of interest, not the underlying
securities owned by the annuity. Thus, there is minimal value
in requiring disclosure of those underlying securities.

9/22/2017
security on a given date. The value of a partial interest in a security is the value of the holder's
proportionate share.
Subp. 5. Exception for charitable trusts. Trustees of associations organized for charitable,
philanthropic, religious, social service, educational, or other public use or purpose are notholders of securities owned by the associations.
Subp. 6. Exception for blind trusts. When a trust is organized to prevent the beneficiary fromhaving any knowledge of the assets held by the trust, the beneficiary of the trust is not required
to report the underlying securities owned by the trust.

Commented [PJ(6]: This provision ensures that
beneficiaries of blind trusts are not required to report trust
assets of which they are supposed to have no knowledge.

4503.0500 CONTRIBUTIONS[For text of subpart 1, see M.R.]
Subp. 2. Time of receipt of contributions.
A. A monetary contribution not made through electronic means is received by a politicalcommittee or political fund, for reporting and contribution limit purposes, when the instrument
conveying the contribution, such as cash, check, or money order, is physically received by thetreasurer, the candidate, or a committee or fund worker.

Commented [PJ(7]: These amendments are intended toclarify when contributions made through electronic means arereceived.

B. A contribution delivered through the United States mail is received on the date the mail isgathered from the delivery point by the treasurer, the candidate, or a committee or fund worker.
C. A monetary contribution made through electronic means is received for purposes of theregistration requirements in section 10A.14; the reporting requirements in section 10A.20; thesessional contribution prohibition in section 10A.273; and the affidavit of contributions
requirement in section 10A.323, on the date that the contributor makes the contribution to thecontribution processor.

Commented [SJ(8]: This section provides that for thevarious reporting deadlines and cutoff requirements of chapter
10A, the date the electronic contribution was made is used.

D. A monetary contribution made through electronic means is received for purposes of thedeposit requirements in section 10A.15, subdivision 3, on the date that the treasurer, thecandidate, or a committee or fund worker has access to the funds under the terms of theagreement with the contribution processor.

Commented [SJ(9]: This section provides that the deposit
deadline is set when the electronic contribution may be
downloaded to the committee account.

[For text of subparts 3 – 9, see M.R.]
Subp 10. Electronic contribution processors. An organization that provides contribution
processing and delivery services, when acting in the ordinary course of business by collecting
and disbursing contributions to a committee or fund that was designated by the contributor, is
not required to register under Minnesota Statutes section 10A.14 or report under Minnesota
Statutes section 10A.20.

Commented [PJ(10]: This provision enacts portions ofAdvisory Opinions 319, 369, and 434 into rule.

4503.1300 GOVERNOR AND LIEUTENANT GOVERNOR.
[For text of subparts 1-3, see M.R.]
Subp. 4. Contribution limits for governor and lieutenant governor before and after
merger of separate committees. Prior to the merger of separate principal campaign
committees for governor and lieutenant governor, each committee may accept contributions up
2

Commented [PJ(11]: This amendment is necessary tocorrect a reference to a rule part that was moved into statuteduring the last legislative session.

9/22/2017
to the limits set forth in Minnesota Statutes, section 10A.27, subdivision 1, clause (a), forgovernor and lieutenant governor running together. After the merger of the committees,
contributions to either committee from a single source must be aggregated in determining
whether the contribution limit for the joint committee has been reached or exceeded. If the limit
has been exceeded, contributions must be returned in accordance with subpart 5 Minnesota
Statutes section 10A.27, subdivision 16a.
[For text of subparts 5-6, see M.R.]
4503.1400 PUBLIC SUBSIDY AGREEMENTS.
[For text of subparts 1-3, see M.R.]
Subp. 3a. Effect on contributions to independent expenditure committees and funds. By
signing a public subsidy agreement, a candidate agrees that the provision in Minnesota Statutes
section 10A.25, subdivision 3a, prohibiting a candidate’s principal campaign committee frommaking independent expenditures also prohibits a candidate’s principal campaign committee
from making contributions to independent expenditure political committees or funds.

Commented [PJ(12]: This provision enacts Advisory
Opinion 412 into rule.

Subp. 10. Special elections held under Minnesota Statutes section 204B.13, subdivision2, paragraph (c). The filing deadlines below apply to a special election held under Minnesota
Statutes section 204B.13, subdivision 2, paragraph (c), for which there is no filing period:

Commented [PJ(13]: This provision specifies how toadminister the deadlines for the public subsidy program whena special election is called to fill a vacancy in nomination
under section 204B.13, subdivision 1, paragraph (c). These
special elections do not have filing periods like typical special
elections. Instead, the political party with the vacancy innomination has until 7 days after the general election tosubmit the name of the party’s candidate. This subpart uses
the deadlines applicable to typical special elections (1 day
after the filing period closes for the agreement; five days after
the filing period closes for the affidavit) and ties them to thedeadline for submitting the name of the party’s new candidate(7 days after the general election).

A. The candidate must sign and submit the public subsidy agreement to the board notlater than eight calendar days after the general election.
B. The candidate must submit the affidavit of contributions not later than 12 calendar
days after the general election.
4503.1900 DISCLAIMERS
Subpart 1. Written independent expenditures in opposition to a candidate. A written
independent expenditure in opposition to a candidate that uses the language below in thecommunication satisfies the disclaimer requirements in Minnesota Statutes section 10A.17,
subdivision 4, and Minnesota Statutes section 211B.04:
This is an independent expenditure in opposition to ……………(insert candidate name)prepared and paid for by ……………… (insert name of entity participating in the expenditure),……………….(insert address). It is not coordinated with or approved by any candidate nor isany candidate responsible for it.
Subp. 2. Written independent expenditures in support of a candidate. A written
independent expenditure in support of a candidate that uses the language below in thecommunication satisfies the disclaimer requirements in Minnesota Statutes section 10A.17,
subdivision 4, and Minnesota Statutes section 211B.04:
This is an independent expenditure in support of ………….(insert candidate name) preparedand paid for by …………..(insert name of entity participating in the expenditure),…………….(insert address). It is not coordinated with or approved by any candidate nor is any
candidate responsible for it.

3

Although the rule says “calendar days,” the provision in Minn.
R. 4501.0500, subpart 3, stating that when a filing date falls
on a weekend or holiday, the filing date moves to the next
business day would still be applicable.
Commented [PJ(14]: This section specifies language thatwould satisfy both the disclaimer requirement for independent
expenditures and the disclaimer requirement for campaign
material. It also specifies language that would satisfy thestatutory disclaimer requirements in other common situations
not explicitly discussed in those statutes, such as when two
entities jointly produce a communication.
Commented [PJ(15]: Subparts 1 through 4 specify
language for written communications.

9/22/2017
Subp. 3. Written independent expenditures that name more than one candidate
supported or more than one candidate opposed. When a written independent expenditurenames more than one candidate supported or names more than one candidate opposed, thedisclaimer must
A. include the names of each candidate supported or opposed by the communication;or
B. use the phrase “the candidates named” in place of the list described in item A.
Subp. 4. Written independent expenditures without cost. If a written independent
expenditure is produced and disseminated without cost, the words “and paid for” may beomitted from the disclaimer.
Subp. 5. Independent expenditures; broadcast media. A. An independent expenditure
disseminated through broadcast media that uses the language below in the communication
satisfies the disclaimer requirements in Minnesota Statutes section 10A.17, subdivision 4, andMinnesota Statutes section 211B.04:

Commented [PJ(16]: This subpart establishes the languagefor disclaimers on broadcast communications.

This independent expenditure is paid for by ………….. (insert name of entity participating in the
expenditure). It is not coordinated with or approved by any candidate nor is any candidate
responsible for it.
B. An independent expenditure produced and broadcast without cost that uses the language
below in the communication satisfies the disclaimer requirements in Minnesota Statutes section
10A.17, subdivision 4, and Minnesota Statutes section 211B.04:……………………. (insert name of entity participating in the expenditure) is responsible for thecontents of this independent expenditure. It is not coordinated with or approved by any
candidate nor is any candidate responsible for it.
Subp. 6. Independent expenditures; more than one participant. When more than one entity
participates in making an independent expenditure that requires a disclaimer under Minnesota
Statutes section 10A.17, subdivision 4, the name of every participating entity must be includedin the disclaimer. In written communications, the address of each entity must be listed after theentity’s name.
Subp. 7. Campaign material; more than one participant. When more than one entity
participates in the preparation or dissemination of campaign material that requires a disclaimer,
under Minnesota Statutes section 211B.04, paragraph (a), the name of every participating entity
must be included in the disclaimer. In written communications, the address of each entity mustbe listed after the entity’s name.
Subp. 8. Disclaimer requirements; services for a constituent. Communications prepared
as services for a constituent under Minnesota Statutes section 10A.01, subdivision 26,
paragraph (6), must include the disclaimer required by Minnesota Statutes section 211B.04
when the communications are disseminated after adjournment sine die of the legislature in theelection year for the office held.
Subp. 9. Disclaimer requirements; type sizes. A disclaimer in a written communication
satisfies the requirement in Minnesota Statutes section 10A.17, subdivision 4, that an
independent expenditure disclaimer be in conspicuous type and the requirement in Minnesota
4

Commented [PJ(17]: This provision clarifies confusion
about whether a disclaimer is necessary on constituent
services communications distributed during the time whenthose communications must be reported as campaign
expenditures.
Commented [PJ(18]: The rules do not set font sizes for allcommunications because there was no way to craft
requirements that fit all written communications. Instead, thisprovision creates safe harbors for two types of commonlyused communications.

9/22/2017
Statutes section 211B.04 that campaign material prominently include a disclaimer when thedisclaimer meets the following type size requirements:
A. For written communications other than an outdoor sign, website, or social media
page, the disclaimer is printed in at least 8 point type.
B. For written communications on a website or social media page, the disclaimer isprinted in the same point type as the majority of the text in the body of the website orsocial media page.
Subp. 10. Disclaimer requirements; homepages of websites and social media pages.
The disclaimer requirements in Minnesota Statutes section 10A.17, subdivision 4, andMinnesota Statutes section 211B.04 are satisfied for an entire website or social media page
when the required disclaimer appears once on the homepage of the site.
4525.0330 SUBMISSION TO BOARD; MATTERS UNDER STAFF REVIEW RESOLVED BY
CONCILIATION AGREEMENT.
Supbart 1. Matter under staff review resolved by conciliation agreement. A matter
under staff review that is resolved by conciliation agreement under part 4525.0320 must bepresented to the board for approval at a meeting closed to the public under part 4525.0200,
subpart 5.
The respondent must be given an opportunity to be heard by the board prior to theboard’s decision regarding the agreement.
The executive director must send notice of the meeting to the respondent. The noticemust be sent not later than the time that the agreement is provided to the board and must
include a copy of the agreement. The notice must include the date of the meeting at which theboard will consider the matter and a statement that the respondent has the opportunity to beheard by the board before the board’s determination regarding the agreement.
A conciliation agreement made under part 4525.0320 to resolve a matter under staff
review is final only after the board approves the agreement.
If the board does not approve a conciliation agreement to resolve a matter under staff
review, the board must lay the matter over until its next meeting and:A. provide guidance and direct the executive director to continue the staff review; or
B. direct the executive director to prepare the matter for resolution by the board without
an agreement pursuant to part 4525.0340.
If an agreement proposed under this subpart is not approved by the board, any
admissions by the respondent and any remedial steps taken or agreed to by the respondent are
not evidence of a violation in any subsequent proceeding.
Subp. 2. Matter under staff review resolved; no violation. The executive director
must close a matter under staff review when the staff review establishes that no violation of thecampaign finance laws has occurred. The executive director must report the closure of the5

Commented [PJ(19]: The amendments to parts 4525.0330
and 4525.0340 make it possible for staff reviews to beresolved immediately through closure or the prompt issuanceof findings. Currently, even staff reviews where no violation isfound must be presented to the Board for resolution, which
delays the resolution of the matter for at least five weeks.

9/22/2017
matter to the board at a meeting closed to the public under part 4525.0200, subpart 5, and must
send notice of the closure to the respondent.
Subp. 3. Matter under staff review; violation not requiring formal investigation. A
matter under staff review that is resolved without a formal investigation under part 4525.0340
must be submitted to the board for approval at a meeting closed to the public under part4525.0200, subpart 5.
The respondent must be given an opportunity to be heard by the board prior to theboard’s decision regarding the staff review.
The executive director must send notice of the meeting to the respondent. The noticemust be sent not later than the time when the written document resolving the matter is provided
to the board and must include a copy of the written document resolving the matter. The noticemust include the date of the meeting at which the board will consider the matter and a statementthat the respondent has the opportunity to be heard by the board before the board’s
determination regarding the resolution of the staff review.
A written document concluding a matter under staff review without a formal investigation
is final only after the board approves the document.
If the board does not approve the written document resolving a matter under staff review
without a formal investigation, the board must:
A. provide guidance and direct the executive director to continue the staff review;
B. initiate a formal investigation of the matter; or
C. direct the executive director to prepare the matter for resolution by the board
pursuant to part 4525.0340.
If a written document resolving a staff review without a formal investigation under thissubpart is not approved by the board, any admissions by the respondent and any remedial
steps taken or agreed to by the respondent are not evidence of a violation in any subsequent
proceeding.
4525.0340 SUBMISSION TO BOARD; BOARD-INITIATED INVESTIGATIONS AND NOTRESOLVED BY CONCILIATION AGREEMENT.
Subpart 1. Submission to board. The executive director must submit the following
matters to the board for decision under this part:A. a matter under staff review that is not resolved by conciliation agreement under parts
4525.0320 and 4525.0330; andB. any other matter that the board is to consider for the authorization of a formal
investigation, other than a matter arising from a filed complaint.
The submission must be in writing, must describe the potential violation involved, andmust include any supporting information. The submission must explain the actions undertaken
69/22/2017
in any summary proceedings and any points of disagreement preventing resolution of thematter.
The respondent must be given an opportunity to be heard by the board prior to theboard’s decision regarding the submission.
The executive director must send notice of the submission to the respondent. The
notice must be sent not later than the time that the submission is provided to the board andmust include a copy of the submission. The notice must include the date of the meeting at
which the board will consider the matter, and a statement that the respondent has theopportunity to be heard by the board before the board’s determination regarding the submission.
[For text of subparts 2-3, see M.R.]

7

9/22/2017
Expenditure and noncampaign disbursement provisions
4503.0850 EXPENDITURES AND NONCAMPAIGN DISBURSEMENTS; GENERALPROVISIONS
Subpart. 1. Reimbursements. A. When a committee reimburses an individual or association
for an expenditure or a noncampaign disbursement, the reimbursement is not required to beitemized on a report of receipts and expenditures unless the total reimbursements andpayments made by the committee during the year to that individual or association exceed $200.
B. When a committee reimburses an individual or association for an expenditure or
noncampaign disbursement that requires itemization on a report of receipts and expendituresand chooses under Minnesota Statutes section 10A.20, subdivision 13, to report theexpenditure or noncampaign disbursement as a reimbursement to a third party, the committee
must disclose the information below on the report.

Commented [PJ(1]: This provision is intended to clarify
confusion about whether the $200 threshold for itemizing
expenditures on reports applies to the total amount paid
during the year to the person being reimbursed or to the total
amount paid during the year to the vendor of the goods orservices for which reimbursement was made. The subpart
specifies that itemization is required when the payments to theperson being reimbursed exceed $200.
Commented [PJ(2]: This provision is intended to clarify
what information must be included when a committee reportsa reimbursement.

1. The name and address of the individual or association to which reimbursement was
made;
2. The name and address of the vendor supplying the good or service for which
reimbursement was made;3. The date of the expenditure or noncampaign disbursement for which reimbursement was
made;
4. The date of the reimbursement;
5. A description of the specific good or service purchased; and6. If the reimbursement was for a noncampaign disbursement, the specific noncampaign
disbursement category in Minnesota Statutes section 10A.01, subdivision 26, or thischapter that is applicable to the good or service for which reimbursement was made.
Subp. 2. Allocating ongoing expenses. When an ongoing expense has both a campaign
purpose and a purpose listed as a noncampaign disbursement in Minnesota Statutes section
10A.01, subdivision 26, or this chapter, the committee must allocate the cost of the expense
between the two purposes according to the proportion of actual use for each purpose.

Commented [PJ(3]: This subpart is intended to clarify
confusion regarding how to report expenses that have both acampaign and a noncampaign component.

Subp. 3. Cellular telephone plans. When a candidate’s committee pays for the
candidate’s cellular telephone plan, the committee must pay only for the cellular telephone use
attributable to the candidate. To determine the use attributable to the candidate, the committee
must

Commented [PJ(4]: This subpart is intended to help
committees avoid conversion of committee funds to personaluse in the area of cell phone plans. The subpart requires
committees that pay for cell phone service for candidates topurchase single-user plans for the candidate or to use one of
the listed methods to determine how much of a multi-user planis attributable to the candidate.

A. purchase a single-user plan that covers only the candidate’s telephone and data usage;or
B. purchase a multi-user plan and pay only the candidate’s share of the monthly cost.
To determine the candidate’s share of the monthly cost of a multi-user plan, the committee mustuse one of the following methods:
A. Track the data, text, and telephone calls used each month by each user on the plan
to determine the portion of the plan cost that should be allocated to the candidate’s
telephone for that month and add that amount to the line cost for the candidate’s
telephone; or
B. Divide the total monthly cost of the plan by the number of users covered by the plan.
1

9/22/2017
Subp. 4. Mileage. The recordkeeping requirements in Minnesota Statutes sections
10A.025, subdivision 3, and 10A.13, subdivision 2, are satisfied for mileage expenses paid by acommittee when the committee obtains a mileage log that shows the information listed below:

Commented [PJ(5]: This subpart is intended to clarify what
information must be kept to support the payment of mileage
expenses. It follows the requirements of Minnesota Statutes
section 10A.155.

A. The date of each trip taken;
B. The purpose of each trip taken;
C. The distance traveled during the trip; andD. If the mileage is not being paid at the lowest rate used by the state to reimburse its
employees for automobile use, the actual cost of fuel, maintenance, repairs, andinsurance directly related to the use of the automobile.
Subp. 5. Purpose of expenditure or noncampaign disbursement. When an expenditure or
noncampaign disbursement must be itemized on a report of receipts and expenditures under
Minnesota Statutes section 10A.20, subdivision 3, the report must establish the purpose of theexpenditure or noncampaign disbursement by explaining how the specific good or service
purchased was used.

Commented [PJ(6]: This subpart is intended to clarify
confusion about what must be included on a report toestablish the purpose of an expenditure as required byMinnesota Statutes section 10A.20, subdivision 3.

4503.0900 NONCAMPAIGN DISBURSEMENTS.
Subpart 1. Additional definitions. In addition to those listed in Minnesota Statutes,
section 10A.01, subdivision 26, the following expenses are noncampaign disbursements:
A. transportation, meals, and lodging paid to attend a campaign school;
B. costs of campaigning incurred by a person with a disability, as defined in Minnesota
Statutes, section 363A.03, subdivision 12, and which are made necessary by the disability;
C. the cost to an incumbent or a winning candidate of providing services to residents inthe district after the general election in an election year for the office held;D. payment of advances of credit in a year after the year in which the advance wasreported as an expenditure;E. payment of fines assessed by the board; andF. costs of running a transition office for a winning gubernatorial candidate during thefirst six months after election;
G. a contribution to a fund established to support a candidate’s participation in a recountof ballots affecting that candidate’s election;
H. costs paid by a candidate’s principal campaign committee for a single reception
given in honor of the candidate’s retirement from public office after the filing period for affidavits
of candidacy for that office has closed;
andI, a donation from a terminating principal campaign committee to the state general fund;J. a donation from a terminating principal campaign committee to a county obligated to2

Commented [PJ(7]: Items G, H, I, and J codify Advisory
Opinions 415, 424, and 433.

9/22/2017
incur special election expenses due to that candidate’s resignation from state office.
Subp. 2. [Repealed, 21 SR 1779][For text of subpart 3, see M.R.].
Subp. 4. Services for a constituent. A. A candidate’s committee may claim theexpenses listed below as services for a constituent during the periods listed in Minnesota
Statutes section 10A.01, subdivision 26, paragraph (6).
1. The cost of a charter bus to transport constituents to an educational day held at thestate capitol during a legislative session;
2. The cost of hiring an intern that is directly attributable to the intern’s provision ofservices for constituents;
3. The cost of congratulatory letters sent to the office holder’s constituents that include
information about government services available to the recipient or how the recipient
can register to vote; and4. The cost of printing and distributing a review of legislative action and issues to theoffice holder’s constituents if the distribution occurs prior to the sine die adjournmentof the legislature.

Commented [PJ(8]: Subparts 4 through 7 are intended toclarify confusion about which expenses may be claimed, andmay not be claimed, under the different noncampaign
disbursement categories.
Subpart 4 codifies Advisory Opinions 248, 307, and 378 andenforcement decisions issued by the Board.

If the review of legislative action described in subitem 4 is distributed after the legislatureadjourns sine die, the printing and distribution costs must be prorated between noncampaign
disbursements and campaign expenditures as described in Minnesota Statutes section 10A.01,
subdivision 26, paragraph (6), even if the printing occurred prior to adjournment.
B. A candidate’s committee may not claim the expenses listed below as services for aconstituent under Minnesota Statutes section 10A.01, subdivision 26, paragraph (6).
1. The cost of food or beverages consumed by a constituent during a meeting with theoffice holder; and2. The cost of a communication to constituents that advocates for the re-election of theoffice holder, solicits campaign contributions to the candidate or a political party, or
advocates for or against the election of candidates of a political party.
Subp. 5. Food and beverages while campaigning. A candidate’s committee may notclaim the expenses listed below as payments for food and beverages consumed by a candidate
or volunteers while they are engaged in campaign activities under Minnesota Statutes section
10A.01, subdivision 26, paragraph (7).
A. The cost of food and beverages consumed by the candidate or volunteers when thecandidate or volunteers are distributing communications that qualify as a service to a constituent
under Minnesota Statutes section 10A.01, subdivision 26, paragraph (6); andB. The cost of food and beverages consumed by the candidate and volunteers when
the candidate and volunteers are campaigning outside of the candidate’s district.
Subp. 6. Food and beverages; legislative duties. A candidate’s committee may notclaim the expense of food and beverages consumed by individuals other than the legislator at a
reception or meeting as a noncampaign disbursement under Minnesota Statutes section
10A.01, subdivision 26, paragraph (8).
3Commented [PJ(9]: Subparts 5 and 6 codify enforcement
decisions issued by the Board.

9/22/2017

Subp. 7. Expenses for serving in public office. A. A candidate’s committee may
claim the expenses listed below as expenses for serving in public office under Minnesota
Statutes section 10A.01, subdivision 26, paragraph (10).
1. The cost of transportation, lodging, meals, and other expenses necessary to attend
meetings and conferences when the reason that the candidate attends the event is
to assist the candidate in performing the duties of the office held and the candidate
would not attend the event if the candidate were not an office holder;
2. The cost of traveling to the state capitol for scheduled legislative committee meetings
and regular and special legislative sessions when those costs are not reimbursed byanother source;
B. A candidate’s committee may not claim the expenses listed below as expenses forserving in public office under Minnesota Statutes section 10A.01, subdivision 26, paragraph(10).
1. The cost of meals for staff;
2. The cost of membership fees and dues necessary to belong to organizations locatedin the office holder’s district:
3. Costs incurred for transportation, lodging, and other expenses for trips taken outsideof the office holder’s district for the purpose of relationship building; or
4. Costs incurred for transportation, lodging, and other expenses by an individual
accompanying an office holder on a trip unless the office holder is a person with adisability, as defined in Minnesota Statutes, section 363A.03, subdivision 12, and theaccompanying individual is providing services that are made necessary by thedisability.
C. Item B, subitem 4, does not require a committee to allocate a travel expense
between an office holder and an individual accompanying the office holder on a trip when thepresence of the accompanying individual does not increase the amount of the expense.

4

Commented [PJ(10]: This subpart codifies portions ofAdvisory Opinions 255, 277, 329,346, and 354 andenforcement decisions issued by the Board.

9/22/2017
Proposed coordination rules4503.2000 COORDINATED EXPENDITURES.
Subp. 1. Candidate. For purposes of this part, “candidate” means a candidate as defined in
Minnesota Statutes section 10A.01, subdivision 10; the candidate's principal campaign
committee; or the candidate's agent.
Subp. 2. Election segment. For purposes of this part, “election segment” means:
A. For a regular election, the period from January 1 of the year prior to an election year
through December 31 of the election year.
B. For a special election, the entire special election cycle.
Subp. 3. Election cycle. For purposes of this part, “election cycle” has the meaning given thisterm in Minnesota Statutes section 10A.01, subdivision 16.
Subp. 4. Coordinated. For purposes of this part, “coordinated” means with the authorization
or expressed or implied consent of, or in cooperation or in concert with, or at the request or
suggestion of the candidate. A coordinated expenditure is an approved expenditure under
Minnesota Statutes section 10A.01, subdivision 4.
Subp. 5. Spender. The definitions in Minnesota Statutes section 10A.01 apply to the terms
used in this subpart. For purposes of this part, “spender” means any of the following:

Commented [PJ(1]: The list of actions that constitutecoordination quotes the list of actions in the statutory definitionof approved expenditure. The rules create the new term“coordination” instead of using the phrase ‘approved
expenditure” because the term “coordination” is morecommonly used and understood than the phrase “approved
expenditure.”

A. An individual;
B. An association;
C. A political committee;
D. A political fund;
E. An independent expenditure political committee;
F. An independent expenditure political fund; or
G. A party unit.
Subp. 6. Agent. For purposes of this part, “agent” means a person who served during theelection segment as the candidate’s chairperson, deputy chairperson, treasurer, deputy
treasurer, fundraiser, advisor, or business representative, or any other person authorized to act
on the candidate’s behalf.
Subp. 7. Consultant. For purposes of this part, “consultant” means a person or an associationthat provides consulting services.
Subp. 8. Consulting services. For purposes of this part, “consulting services” means polling,
communications planning and design, advertising, messaging, and any other service thatinvolves campaign strategy. “Consulting services” does not mean printing or mailing campaign
material, legal services that do not involve campaign strategy, accounting services, or costs forthe use of a medium for communications purposes.
Subp. 9. General treasury money. For purposes of this part, “general treasury money” has
the meaning given this term in Minnesota Statutes section 10A.01, subdivision 17c.
1

Commented [PJ(2]: This definition codifies the agent
provisions of Advisory Opinions 338 and 410 and enforcement
decisions issued by the Board.

9/22/2017
Subp. 10. Domestic partner. For purposes of this part, “domestic partner” means an
individual who shares an interpersonal relationship with the candidate and resides in the same
residence as the candidate but is not married to the candidate.
Subp. 11. Coordinated expenditures. An expenditure listed below, when expressly
advocating for the election of the candidate or the defeat of the candidate’s opponent, is acoordinated expenditure that is not independent under Minnesota Statutes section 10A.01,
subdivision 18:
A. An expenditure made during an election segment by a spender for which the candidate,during that same election segment, has engaged in fundraising of money that is not
general treasury money.

Commented [PJ(3]: This provision codifies Advisory
Opinions 412 and 437.

1. Fundraising includes:
a. Soliciting, collecting, or directing money that is not general treasury
money for or to the spender;b. Providing names of potential donors of money that is not general treasury
money to the spender; andc. Appearing as a speaker at an event raising money that is not generaltreasury money for the spender.
2. This item applies to fundraising for money that is not general treasury money byan individual prior to the individual meeting the definition of a candidate in
Minnesota Statutes section 10A.01, subdivision 10.
3. This item does not apply to a candidate’s fundraising on behalf of a party unit.
B. An expenditure that reproduces or disseminates, in whole or in part, campaign material
designed, produced, paid for, or distributed by the candidate.
1. This item does not apply to:a. Campaign material incorporated into a communication that advocates thedefeat of the candidate who prepared the material;
b. Campaign material used in a news story or editorial; orc. The reproduction or dissemination of a candidate’s campaign materials if
the reproduction or dissemination costs $20 or less.
B. An expenditure made during an election segment for consulting services from a
consultant that has also provided consulting services to the candidate or the candidate’s
opponent during that same election segment.
1. This item does not apply when the following conditions are met:a. The consultant assigns separate personnel to the spender and thecandidate;b. The consultant has a written policy that describes the measures that theconsultant has taken to prohibit the flow of information between the
personnel providing services to the spender and the personnel providing
services to the candidate;2

Commented [PJ(4]: This provision was intended to provide
guidance on the use of publically available material originallyproduced by the candidate in an independent expenditure.
The Board’s enforcement action in this area is not consistent
with the rule being considered.
As the rulemaking progressed, it became clear that it would be
difficult to draw the line between use of a candidate’s material
that constituted coordination and use that did not. Thisdifficulty led to the realization that the issue was not
appropriate for rulemaking primarily intended to codify existing
advisory opinions and longstanding practices. The provision
therefore was removed from the proposed rules.
Commented [PJ(5]: This provision codifies Advisory
Opinion 400 and parts of Advisory Opinion 410.

9/22/2017
c. The written policy has been distributed to all personnel and clientscovered by the policy including the candidate and the spender;d. The consultant has implemented the measures described in the written
policy; ande. No information has been shared between the spender and the personnel
providing services to the spender and the candidate and the personnel
providing services to the candidate.
C. An expenditure made during an election cycle by a spender that:
1. Is not a party unit; and2. Was established, directed, or managed during the same election cycle by any of
the following:a. The candidate;b. An individual who meets the definition of a candidate under Minn. Stat.
section 10A.01, subd. 10, during the same election cycle; orc. The candidate’s spouse or domestic partner.
3. This item does not apply to the spouse or domestic partner of the candidate’s
agent.
D. An expenditure made after the spender receives from the candidate information that is
not publically available regarding the candidate’s campaign plans, strategy, or needs.
E. An expenditure made when:
1. The spender provides information to the candidate regarding the expenditure’scontents, intended audience, timing, location or mode, volume, or frequency; andCommented [PJ(6]: This provision codifies the provisions inAdvisory Opinion 410, which discussed relationships andactions that can defeat the independence of an expenditure.
The candidate’s spouse or domestic partner was included inthis provision on the grounds that the candidate and the
spouse/domestic partner share the same home and have aclose relationship. It therefore is unrealistic to believe that the
spouse/partner has no knowledge of the candidate’s
campaign. Because the same cannot be said with the same
degree of certainty of a candidate’s other family members,
they were not included in the provision. This is the only
provision that includes the candidate’s spouse/partner. The
provisions in items A, B, D, E, and F do not apply to thecandidate’s spouse/partner.

Commented [PJ(7]: Because the definition of “candidate”
includes the candidate, the candidate’s campaign committee,
and the candidate’s agent, the reference to the candidate’s
spouse in paragraph c technically would include the spouse of
the candidate’s agent. Subitem 3 therefore is included to
specify that the provision does not apply to the spouse of acandidate’s agent.
Commented [PJ(8]: Items D and E codify some of theprovisions in Advisory Opinion 410, which discussed
relationships and actions that can defeat the independence ofan expenditure.

2. The information is provided to the candidate before the expenditure iscommunicated to the public.
F. An expenditure made with the candidate’s participation in the following:

Commented [PJ(9]: This provision codifies enforcement
decisions issued by the Board.

1. Any of the processes required for the creation and development of theexpenditure, including budgeting decisions, media design, acquisition of graphics
and text, production, and distribution of the final product; or
2. Any decision regarding the content, timing, location, intended audience, volumeof distribution, or frequency of the expenditure.
G. An expenditure made during an election cycle that was independent under Minnesota
Statutes section 10A.01, subdivision 18, when made that is later used in whole or in part
during the same election cycle by a candidate as campaign material.
This item does not apply if the candidate pays the spender for the fair market value ofthe design or development costs expended to create the campaign material used by thecandidate.
3

Commented [PJ(10]: This provision was intended toprevent candidates from using all or part of an independent
expenditure in their own campaign material. As therulemaking progressed, it became apparent that this provision
could turn a truly independent expenditure by a corporation
into a contribution to a candidate through no fault of thecorporation. Given the significant civil penalties and potential
criminal consequences for corporate contributions, thecommittee decided to remove this provision from the current
rulemaking and further study the issue.

9/22/2017
Subp. 12. Non-coordinated expenditures. An action listed below, by itself, does notestablish that an expenditure made by the spender was coordinated with the candidate:
A. A candidate asks a spender not to make any expenditure to support the candidate or
oppose the candidate’s opponent.
B. An expenditure uses a photograph obtained from a publicly available source or public
event.
C. An expenditure uses information obtained from a biography, position paper, press
release, or similar material about the candidate from a publicly available source or public
event.
D. The spender contributes to the candidate or endorses the candidate.
E. An expenditure includes a hyperlink to the candidate’s website or social media page.
F. An expenditure appears in a news story, commentary, or editorial distributed through thefacilities of any broadcasting station, newspaper, magazine, or other periodical
publication.
G. The spender discusses the candidate’s position on a legislative or policy matter with thecandidate. This item includes the sending, completion, and return of a survey
conducted by the spender to determine whether to endorse the candidate.
H. The spender invites the candidate to appear before the spender’s members, employees,
or shareholders including the candidate’s participation in the event, unless the event
promotes the election of the candidate or the defeat of the candidate’s opponent, or the
candidate requests or accepts campaign contributions at the event.

4

Commented [PJ(11]: These provisions are intended toprovide safe harbors for candidates and independent
spenders by specifying some actions that, by themselves, arenot coordinated.

Minnesota

Campaign Finance andPublic Disclosure Board
Date: September 27, 2017
To:

Board members

From: Jeff Sigurdson, Executive Director

Telephone: 651-539-1189

Re:
Advisory Opinion 444 – wind project siting proceedings before the Public Utilities
Commission
The question posed in Advisory Opinion 444 is whether a wind project siting proceeding before
the Public Utilities Commission (PUC) is an administrative action that subjects an individual
attempting to influence the PUC in that matter to the lobbyist registration requirements in
Chapter 10A. The requester has not consented to make the request public. Therefore, both apublic version of the opinion that does not identify the requester and a nonpublic version that will
be provided only to the requester have been drafted.
The Board resolved the issue presented by the requester in a 2012 enforcement action that is
attached below. In the enforcement decision, the Board began its analysis with the Chapter
10A definition of administrative action. Under that definition, administrative actions include“cases of rate setting, power plant and powerline siting, and granting of certificates of needunder section 216B.243.” The Board then examined the statutory framework governing power
plant and powerline sitings and determined that wind project siting proceedings are power plant
siting proceedings. The Board therefore concluded that wind project siting proceedings areincluded in the Chapter 10A definition of administrative action and that individuals attempting to
influence wind project siting proceedings before the PUC are subject to the lobbyist registration
requirements.
The draft advisory opinion adopts the reasoning in the enforcement decision and similarly holds
that wind project siting proceedings are power plant siting proceedings included in the Chapter
10A definition of administrative action. The draft opinion provides that individuals attempting to
influence the PUC in wind project siting proceedings are subject to the lobbyist registration
requirements in Chapter 10A.
Attachments:
Draft advisory opinion 444 – nonpublic
Draft advisory opinion 444 - public
RequestComplaint of Ward regarding Daniel Schleck, the Coalition for Sensible Siting, Carol Overland,and Goodhue Wind Truth

State of Minnesota
Campaign Finance and Public Disclosure Board
Suite 190, Centennial Building. 658 Cedar Street. St. Paul, MN 55155-1603
THIS ADVISORY OPINION IS PUBLIC DATATHE FOLLOWING PUBLICATION DOES NOT IDENTIFY
THE REQUESTER OF THE ADVISORY OPINION, WHICH IS NONPUBLIC DATA
under Minn. Stat. § 10A.02, subd. 12(b)RE:

Lobbyist registration for wind project siting proceedings before the Public
Utilities Commission
ADVISORY OPINION 444
SUMMARY

Wind project siting proceedings before the Public Utilities Commission are administrative
actions that subject individuals attempting to influence the Commission on those mattersto the lobbyist registration requirements in Chapter 10A.
FACTS
You request an advisory opinion from the Campaign Finance and Public Disclosure Board
based on the following facts that were provided in the letter requesting the advisory opinion
and in discussions with Board staff.
1. You are an individual who represents clients in wind project siting proceedings
before the Public Utilities Commission (PUC).
2. Your representation of these clients involves attempting to influence the wind projectsiting decisions made by the PUC.
ISSUE
Is a wind project siting proceeding before the Public Utilities Commission an
administrative action that subjects an individual attempting to influence that action to thelobbyist registration requirements in Chapter 10A?
OPINION
An individual is subject to the lobbyist registration requirements in Chapter 10A if theindividual attempts to influence legislative action, the actions of a metropolitan
governmental unit, or administrative action.
"Administrative action" means an action by any official, board,commission or agency of the executive branch to adopt, amend, or
repeal a rule under chapter 14. "Administrative action" does not include
the application or administration of an adopted rule, except in cases of-1-

rate setting, power plant and powerline siting, and granting of certificatesof need under section 216B.243.
Minn. Stat. §10A.02, subd. 2.
In a 2012 enforcement decision, the Board addressed the issue of whether a windproject siting proceeding before the Public Utilities Commission (PUC) is a power plant
siting, and thus is an administrative action under the above-cited statute. 1 In its
decision, the Board examined the statutory framework that governs power plant andwind project siting proceedings before the PUC. The Board first noted, as does therequester, that Minnesota Statutes Chapter 216E governs power plant siting, while windproject site permits are initiated under Minnesota Statutes Chapter 216F. The Board
concluded, however, that because Chapter 216F provides that significant portions of
Chapter 216E are applicable to wind project siting proceedings, wind project siting
proceedings are power plant siting proceedings. The Board therefore determined thatwind project siting proceedings are administration actions under Minnesota Statutes
section 10A.02, subdivision 2.
In its analysis, the Board found it significant that the legislature used a specific statutory
section to limit the types of certificates of need covered by the administrative action
definition, but did not include a similar limit in the power plant and powerline siting
clause. The Board therefore found no basis to believe that the legislature intended to
exclude any type of power plant and powerline siting from the definition of administrative
action.
In the enforcement decision, the Board noted the high level of public interest in the sitingof the wind project in question and recognized that such interest is common to thedevelopment of any large energy facility. The Board stated that excluding a site permit
for a wind project facility from the definition of administrative action based solely on thesource of energy used by the facility would unfairly deny the public disclosure on theassociations and money spent trying to influence the PUC in those actions.
The Board concludes that the reasoning in the 2012 enforcement decision still is valid
and adopts that reasoning for this opinion. Because a wind project siting proceeding is a
power plant siting proceeding, a wind project siting proceeding is an administrative
action under Minnesota Statutes section 10A.02, subdivision 2. A person who attempts
to influence the PUC regarding a wind project siting proceeding therefore is subject tothe lobbyist registration requirements in Chapter 10A.

Issued: October 4, 2017
Daniel N. Rosen, Chair
Campaign Finance and Public Disclosure Board

1

In the Matter of the Complaint of Ward regarding Daniel Schleck, the Coalition for Sensible Siting, Carol
Overland, and Goodhue Wind Truth (April 3, 2012)-2-

Minnesota

Campaign Finance andPublic Disclosure Board
Date: September 27, 2017
To:

Board Members

From: Jeff Sigurdson, Executive Director
Re:

Telephone:

651-539-1189

Legislative Recommendations

Minnesota Statutes section 10A.02, subdivision 8, provides in part that the Board…”mayindicate apparent abuses and offer legislative recommendations.” At my request, the Board did
not have a package of legislative recommendations during the 2017 legislative session. I
believe that during a budget year, particularly when there has been a change in party control ofthe legislature, both legislators and Board staff have little time available for non-budgetarylegislative proposals.
Entering a non-budgetary session, legislative attention should be easier to obtain if the Board
wishes to provide legislative recommendations. During a non-budgetary session Board staff
also has more time to explain and support Board recommendations to the legislature. In short,
if there is member interest in providing Board recommendations to the legislature, the upcoming
legislative session is the opportunity to do so.
If there is member interest in providing legislative recommendations, staff will develop a list of
subjects for consideration. For example, Board members on the administrative rule committee
noted several areas where disclosure in the economic interest program needed improvement,
but the needed changes would clearly require legislative action.
I would like to receive Board direction as to whether staff should develop a list of possible
subjects for legislative proposals for the November meeting.

Revised: 9/27/17

CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
October, 2017
ACTIVE FILES
Candidate/Treasurer/
Lobbyist

David BerglundRoxana Bruins

Committee/Agency

Cook Soil andWater Conservation
District

Roxana Bruins for
SenateBrenden Ellingboe Ellingboe (Brenden)for House

Report Missing/
Violation

Late Fee/
Civil Penalty

Referred
to AGO

Date S&C
Servedby Mail

Unfiled Economic
Interest Statement
due January 25,
2016$100 LF$1,000 CP

7/7/16

12/30/16

Untimely Filing of2015 Economic
Interest Statement$80 LF

Untimely Filing2011 Economic
Interest Statement$100 LF$100 CP

Unfiled 2016 YearEnd Report ofReceipts andExpenditures$1,000 LF$1,000 CP

7/28/17

Unfiled 2015 YearEnd Report ofReceipts andExpenditures$1,000 LF$1,000 CP

11/29/16 5/26/17

8/18/17

Default
Hearing
Date

Date
Judgment
EnteredCase Status

Summary
Judgment
Hearingscheduled for
12/11/17

9/6/17

Personal service
in MN was
unsuccessful.
Attempting
personal service
in ORCandidate/Treasurer/
Lobbyist

Report Missing/
Violation

Late Fee/
Civil Penalty

Referred
to AGO

Date S&C
Servedby Mail

Kirsten Johnson

Unfiled Economic
Interest Statement
due June 14, 2016$100 LF$1,000 CP

1/17/17

5/26/17

Summons andComplaint werepersonallyserved on
9/19/17Tim Johnson

Unfiled Economic
Interest Statement
due June 14, 2016$100 LF$1,000 CP

1/17/17

5/26/17

Summons andComplaint werepersonallyserved on
9/11/172016 Year-End
Report of Receipts
and Expenditures$1,000 LF$1,000 CP

7/28/17

9/6/17

Christopher John
Meyer

Committee/Agency

Meyer for
Minnesota

Default
Hearing
Date

Date
Judgment
EnteredCase Status

CLOSED FILES
Candidate/Treasurer/
Lobbyist

Meg Litts

Committee/Agency

Meg Litts for House
9A

Report Missing/
Violation

Late Fee/
Civil Penalty

Referred
to AGO

Date S&C
Servedby Mail2016 Pre-General
Election Report ofReceipt andExpenditures$1,000 CP

3/14/17

6/12/172016 Year-End
Report of Receipt
and Expenditures$1,000 LF$1,000CP

3/14/17

Default
Hearing
Date

Date
Judgment
EnteredCase Status

Closed