Purpose

• Expand and tighten rules for ethics and transparency related to public and local officials' financial interests. The bill requires more comprehensive disclosures, updates how and where to file statements of economic interests, and adds penalties for late or missing disclosures.

Main Provisions

• Section 1 (Conflict of Interest disclosures by officials)

  • Public or local officials who would take an action or decide in a way that could substantially affect their own financial interests (or those of an associated business) must prepare a written statement describing the matter and the potential conflict.
  • They must deliver copies of the statement to their immediate superior; if they are a member of the legislature or a governing body, they must also deliver to the presiding officer.
  • If there isn’t enough time to follow the steps, the official must orally inform the superior or governing body.
  • Defines “financial interest” as any ownership or control in an asset with the potential to generate monetary returns.

• Section 2 (Actions when a conflict arises)

  • If the official is not a legislator or a member of a metropolitan or political subdivision governing body, the superior should assign the matter to someone without a potential conflict.
  • If there is no immediate superior, the official should abstain if possible, possibly by shifting the matter to someone else.
  • The official cannot chair, vote on, or engage in motions or discussions on the conflict-related matter.
  • Legislators may be excused from participation upon request.
  • If abstaining is not possible, the official must file a statement describing the conflict and the action taken, within a week of the action, with the board (public officials) or the governing body (local officials).

• Section 3 (Disclosure of representation in rulemaking hearings)

  • Public officials who represent a client for a fee before a board/commission/agency with rulemaking authority in a hearing must disclose their participation within 14 days after their initial appearance.
  • Late disclosures can incur a $25 daily fee (up to $1,000 total); the board must send a certified-mail notice if a disclosure is late.
  • Failure to disclose can lead to civil penalties (up to $1,000).
  • Required disclosure details include official’s name and office, client name and address, the board/agency, the date and location of the initial appearance, and a general description of the subject matter.

• Section 4 (Timing for filing statements of economic interest)

  • Different deadlines apply depending on how the official becomes involved:
  • Within 60 days of accepting employment as a public or local official.
  • Within 60 days of assuming office for certain high-level roles (e.g., district court judge, appeals court judge, Supreme Court justice, county commissioner).
  • Within 14 days after the end of the candidate filing period for elective state, constitutional, or local offices (excluding county commissioner).
  • Within 14 days after undertaking duties for offices requiring Senate advice and consent.
  • Within 60 days of accepting or assuming duties for certain Racing Commission staff positions.

• Section 5 (Original statement reporting period)

  • For an original statement of economic interest:
  • If related to employment acceptance, it covers the calendar month before the month employment started.
  • If related to assuming duties, it covers the calendar month before the month duties began.
  • If related to candidacy, it covers the calendar month before the month the candidate filed the affidavit.

• Section 6 (Place of filing)

  • Public officials must file with the board.
  • Local candidates or local officials must file with their governing body.
  • Filing becomes public data.
  • If an official has both public and local roles, they must file with the board.

• Section 7

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Significant Changes and Impacts

• Expanded reach of conflict-of-interest disclosures to more officials and situations.
• New or clarified procedures for conflict management, including required action, abstention, and documentation.
• Added or tightened penalties for failing to disclose participation in rulemaking or conflicts (late filing fees and civil penalties).
• Streamlined and standardized where and when statements of economic interest must be filed, including for complex roles and offices.
• Classifies statements as public data and clarifies sharing requirements with boards and governing bodies.

How this affects officials and the public

• Officials must be more proactive and timely in disclosing potential conflicts and client representations.
• The public may gain greater visibility into officials’ potential financial conflicts and outside relationships.
• Penalties create stronger incentives to file accurately and on time.

Definitions in Context

• Key terms to know: financial interest, conflict of interest, statement of economic interest, board, governing body, public official, local official, rulemaking, hearing, initial appearance, certified mail, civil penalty, late filing fee.

Relevant Terms - conflict of interest - financial interest - statement of economic interest - board - governing body - public official - local official - rulemaking - hearing - initial appearance - late filing fee - civil penalty - filing deadline - disclosure - client representation - Minnesota Statutes 2024 and 2025 Supplement