Purpose

To strengthen campaign finance transparency by expanding what must be disclosed in a statement of economic interest. The bill adds digital assets (including virtual currency, stablecoins, and nonfungible tokens) to the kinds of assets that must be reported and specifies detailed reporting requirements for stocks, digital assets, real property, and other financial interests.

Key definitions

• Digital asset: digital-only assets that confer economic, proprietary, or access rights, including virtual currency and natively electronic assets such as stablecoins and nonfungible tokens (NFTs).

What the bill would change or add to current law

• Adds a new defined category (digital assets) to the information public officials must report.
• Expands the content of the required statement of economic interest (the form and items filed with the board) to include specific disclosures about:
  • Real property owned in Minnesota (by the filer or spouse) and the interests held, using value thresholds.
  • Real property interests held through partnerships in Minnesota (with thresholds).
  • Investments or property connected to parimutuel horse racing in the U.S. and Canada.
  • Principal business activity categories and compensation from employment or independent contracting, with thresholds and ownership requirements.
  • Securities (stocks) and digital assets (including NFTs and other digital assets) with specified value thresholds.
  • Transactions involving stocks and digital assets (dates and values of purchases and sales).
  • Contracts, licenses, leases, or franchises with a government agency, held by the filer or a business in which they have substantial ownership.

Detailed disclosure requirements (Subd.5) in plain terms

1) Personal identifying information: name, address, occupation, and principal place of business. 2) Listing of all associated businesses and the nature of each association. 3) Real property in Minnesota (excluding homestead) where the filer or spouse has: - A direct interest valued over $2,500, or an option to buy with FMV over $50,000. 4) Real property in Minnesota owned through partnerships with a similar threshold and with details such as street address, city, and location info. 5) Investments in parimutuel horse racing (in the U.S. or Canada), including any horse interests held. 6) Principal business activity category for each job from which the filer or spouse earns more than $250 per month as an employee, if they own 25% or more of that business. 7) Principal business activity category for each source of compensation over $2,500 in the last 12 months as an independent contractor, if they own 25% or more of that business. 8) Full name of each security with value over $10,000 owned by the filer or spouse. 9) For each stock or stock option reported, the dates and values of every purchase or sale during the reporting period. 10) Full name of each digital asset with value over $10,000 owned by the filer or spouse. 11) For each digital asset reported, the dates and values of every purchase or sale during the reporting period. 12) Any contract, professional license, lease, or franchise held by the filer, spouse, or any business with 25% ownership, if the contract/license/lease/franchise is with a government agency.

Reporting format and categorization details

• Business categories used for employee and independent contractor reporting should align with the IRS Schedule C categories (general topic headings). The bill does not require listing IRS code numbers.
• New categories may only be added if enacted by law.
• For compensation from a single source in a given month, the total amount from that source in that month must be reported.
• The value of real property is the market value shown on the property tax statement.
• “Date of appointment” means the effective appointment date; “accepting employment as a public official” means the appointment’s effective date.
• Listings must not reveal whether the filer or spouse is associated with the listed item.
• For certain stock and digital asset transactions, filers may report value in predefined ranges (e.g., 1 to 10,000; 10,001 to 50,000; up to over 50,000,000).

Practical effects and significance

• Broadens asset disclosure to include digital assets and related transactions, aligning state campaign finance reporting with modern digital holdings.
• Introduces clear thresholds for what assets and transactions must be disclosed, balancing transparency with administrative practicality.
• Adds specific rules around anonymity of disclosed items and the use of IRS Schedule C categories for business activity labeling.

Changes to existing law

• Amends Minnesota Statutes 2024, section 10A.01 by adding a new subdivision defining digital assets.
• Amends Minnesota Statutes 2024, section 10A.09 subdivision 5 to specify expanded form requirements and the detailed disclosures listed above.

Compliance considerations

• Filers must track and report both holdings and transactional history for stocks and digital assets, including purchases and sales, using the reporting thresholds.
• Filers need to gather data on real property through either direct ownership or partnerships, ensuring value thresholds are met before listing.
• Filers must categorize their activities using IRS Schedule C categories for business activities, and must rely on the board-prescribed form.

Relevant terms - Digital asset - Virtual currency - Stablecoins - Nonfungible tokens (NFTs) - Statement of economic interest - Real property - Parimutuel horse racing - Securities - Stock - Stock option - Independent contractor - Employee compensation - Government agency - IRS Schedule C - Minnesota Statutes 2024 section 10A.01 - Minnesota Statutes 2024 section 10A.09 subdivision 5