Purpose

• To reduce conflicts of interest by restricting state employees and legislators from employment with entities that receive state grants, tighten rules around accepting gifts, and update penalties. It also expands the definition of “serious crime” used for recalling state officers.

Main Provisions

• Former legislators—employment restrictions

  • A former legislator may not take a job with an employer within 12 months after leaving office if, while serving, they voted on final passage for a law that expressly named that employer as a grant recipient.

• Gifts, rewards, and benefits for state employees (modifies existing gift rules)

  • The law keeps general prohibitions on accepting gifts and favors but adds specific allowed exceptions, including:
  • Gifts of nominal value or textbooks
  • Plaques or similar mementos
  • Travel or meal reimbursements up to actual expenses with advance approval
  • Honoraria or expenses for papers, talks, demonstrations, or appearances on the employee’s own time
  • Tips received by certain state employees in Itasca State Park
  • These changes clarify when certain gifts and benefits are allowed for executive branch employees.

• Penalties for gift-related violations

  • Violations of the gift-related provisions can be charged as a crime (the same penalties that apply to other criminal violations).

• Employment restrictions for grant applicants and recipients

  • Former state employees: An employer cannot hire someone who, in the prior 12 months as a state employee, participated in evaluating, selecting, ranking, administering, or auditing a grant that benefited the employer.
  • Legislators and former legislators: An employer cannot hire a legislator or former legislator who, in the prior 12 months, voted for a law that expressly named the employer as a grant recipient.
  • Penalties: Violations carry criminal penalties; any grant money tied to a violation must be repaid; the violator’s employer is barred from receiving a state grant for 12 months after the violation.

• Definition of serious crime (for recall purposes)

  • The bill broadens the definition to include gross misdemeanors and certain misdemeanors involving assault, injury or threat to a person or public safety, dishonesty, harassment, coercion, obstruction of justice, or the sale/possession of controlled substances, among other specified offenses.
  • This updated definition applies to processes related to recalling a state officer.

Significant Changes to Law

• Adds a one-year cooling-off period for former legislators before they can work for grant-recipients named in laws they voted on.
• Expands and clarifies permissible gifts and benefits for executive branch employees, with explicit exceptions.
• Introduces criminal penalties for improper gift-related conduct.
• Extends employment restrictions to prohibit hiring of individuals who had certain grant-related roles with grant recipients, and to prohibit hiring legislators who voted for a qualifying grant law.
• Tightens the definition of “serious crime” used in recall provisions.

Implications and How It Works in Practice

• Public officials and former officials will face new restrictions about who they can work for after leaving office or after participating in grant decisions.
• Employers and grant programs must ensure they do not hire or engage former state employees or legislators who meet the defined disqualifying criteria.
• Violations could result in criminal penalties, voided grant agreements, required repayment of funds, and temporary disqualification from receiving state grants.

Relevant Terms - former legislator - 12 months - final passage - expressly named - grant recipient - grant program - evaluating - selecting - ranking - administering - auditing - serious crime - 609.42 - gifts - nominal value - travel reimbursements - honoraria - Itasca State Park - penalties - recall - employment restriction - grant applicants - grant recipients - public trust - conflict of interest