HF4838

Purpose

This bill aims to reduce conflicts of interest in state government by restricting certain employment and grant-related situations, tightening gift rules for state employees, strengthening penalties for improper gifts, and updating the definition of “serious crime” used in recall actions for state officers.

Main Provisions

• Former legislators employment restrictions

  • A former legislator cannot accept employment with an employer within 12 months after leaving office if, while a legislator, the person voted on final passage for a law that expressly named the employer as a recipient of a grant.

• Gifts and gifts-related rules (amendment to 43A.38 Subd. 2)

  • The bill keeps the general prohibition on benefits from outside sources but adds specific exceptions that are not considered violations, including:
  • Gifts of nominal value or textbooks
  • Plaques or similar keepsakes
  • Reimbursement of travel or meal expenses not reimbursed by the state, with advance approval
  • Honoraria or expenses for talks, papers, demonstrations, or appearances conducted on the employee’s own time
  • Tips received by employees in certain hotel/restaurant settings at Itasca State Park
  • These items may be accepted without it being treated as a violation of the gifts rule.

• Penalties for gift rule violations

  • A violation of the above gifts exemptions (gift exceptions) is treated as a violation of Minnesota’s bribery crime statute (section 609.42).

• Employment restrictions for grant applicants and recipients

  • Subdivision 1 (Former state employees): An employer must not hire a person who, within the prior 12 months as a state employee, participated in evaluating or selecting grant recipients for a grant that awarded to the employer, participated in ranking grant applicants for a grant the employer applied to, or administered/audited a grant awarded to the employer.
  • Subdivision 2 (Legislators and former legislators): An employer must not hire a legislator or former legislator who voted within the prior 12 months for a law that expressly names the employer as a grant recipient.
  • Subdivision 3 (Penalties): Violating these provisions is a breach of section 609.42. A grant agreement tied to the violation is void, any state money paid must be repaid, and the employer is barred from receiving a state grant for 12 months after the start of the offending employment.

• Definition of “Serious crime” for recall purposes

  • The bill adds/clarifies the definition of “serious crime” to be used when recalling a state officer. It includes:
  • Gross misdemeanors involving assault, intentional injury or threat to person or public safety, dishonesty, harassment, aggravated driving while intoxicated, coercion, obstruction of justice, or the sale/possession of controlled substances
  • Misdemeanors involving similar harms (assault, dishonesty, coercion, obstruction of justice, or controlled substances)
  • Related offenses as defined in specified statutes (examples given include 16A.139, 609.465, 609.54)

• Note on recall context

  • The changes to “serious crime” are intended to affect recall procedures for state officers, clarifying which crimes qualify.

Significant Changes to Existing Law

• Amends Minnesota Statutes 2024 section 43A.38 Subd. 2 to include new gift exemptions.
• Adds a new Subdivision 10 to 43A.38 addressing penalties for gift-rule exemptions.
• Adds a new Minnesota Statutes 2024 section 181.995 establishing employment restrictions related to grant applications and recipients for both former state employees and legislators, plus penalties.
• Adds a new Subdivision 4 to Minnesota Statutes 211C.01 defining “serious crime” for recall purposes.

Practical Effects

• Strengthened cooling-off rules for former legislators who voted to name an employer in a grant law.
• Clearer guidance on what gifts state employees may accept without violating ethics rules, including a specific note about Itasca State Park tips.
• Potential criminal consequences for improper gift acceptance under the gift rule.
• Tighter restrictions on hiring people involved in grant processes and on legislators who voted for laws naming employers as grant recipients, with financial and grant-related penalties if violated.
• Updated criteria for what counts as a “serious crime” when considering recall of a state officer.

Compliance Implications

• State agencies and employers will need to track timing (12-month windows) and prior involvement in grant processes to avoid prohibited hiring.
• State employees should be aware of approved exceptions for gifts to ensure gifts fall within allowed categories.
• Remember that violations can trigger voiding of grants, repayment obligations, and ineligibility for future state grants for a period.

Relevant terms employer; grant recipients; grant program; grant; former legislator; recall; serious crime; final passage; law expressly named the employer as a grant recipient; Itasca State Park; gifts of nominal value; plaques; travel or meal reimbursements; honoraria; state employees; 609.42; conflict of interest; cooling-off period; prohibited employment; evaluation or ranking of grants; administration or auditing of grants; 12 months; public ethics; bribery.