1.1 A bill for an act
1.2 relating to campaign finance; providing funds for transition expenses for secretary
1.3 of state-elect, state auditor-elect, and attorney general-elect; amending the definition
1.4 of noncampaign disbursement; prohibiting making expenditures for inaugural
1.5 event expenses or transition expenses except through the candidate's principal
1.6 campaign committee or specified laws; authorizing rulemaking; amending
1.7 Minnesota Statutes 2024, section 10A.01, subdivision 26; proposing coding for
1.8 new law in Minnesota Statutes, chapters 5; 6; 8; 10A.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. [5.51] EXPENSES OF SECRETARY OF STATE-ELECT.
1.11 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined have the
1.12meanings given them.
1.13 (b) "Secretary of state-elect" means the person who is not currently secretary of state
1.14and is the apparent successful candidate for the office of secretary of state following a
1.15general election.
1.16 (c) "Commissioner" means the commissioner of the Department of Management and
1.17Budget.
1.18 Subd. 2.Transition expenses.In the fiscal year of an election for secretary of state and
1.19subject to availability of funds, the commissioner shall transfer up to $50,000 from the
1.20general contingent account in the general fund to the Department of Management and
1.21Budget. This transfer is subject to the review and advice of the Legislative Advisory
1.22Commission pursuant to section 3.30. In consultation with the secretary of state-elect, the
1.23commissioner shall use the transferred funds to pay expenses of the secretary of state-elect
1.24associated with preparing for the assumption of official duties as secretary of state. The
1Section 1.
S2386-1 1st EngrossmentSF2386 REVISOR JFK
SENATE
STATE OF MINNESOTA
S.F. No. 2386NINETY-FOURTH SESSION
(SENATE AUTHORS: MARTY, Boldon, Westlin, Bahr and Rest)
OFFICIAL STATUSD-PGDATE
Introduction and first reading71703/10/2025
Referred to Elections
Author added Rest77703/13/2025
Comm report: To pass as amended and re-refer to State and Local Government03/24/2025 2.1commissioner may use the transferred funds for expenses necessary and prudent for
2.2establishment of a transition office prior to the election and for dissolution of the office if
2.3the incumbent secretary of state is reelected or after the inauguration of a new secretary of
2.4state. Expenses of the secretary of state-elect may include suitable office space and
2.5equipment, communications and technology support, consulting services, compensation
2.6and travel costs, and other reasonable expenses. Compensation rates for temporary employees
2.7hired to support the secretary of state-elect and rates paid for consulting services for the
2.8secretary of state-elect shall be determined by the secretary of state-elect.
2.9 Subd. 3.Unused funds.No new obligations shall be incurred for expenses of the secretary
2.10of state-elect after the date of the inauguration. By March 31 of the year of the inauguration,
2.11the commissioner shall return to the general contingent account any funds transferred under
2.12this section that the commissioner determines are not needed to pay expenses of the secretary
2.13of state-elect.
2.14 Sec. 2. [6.93] EXPENSES OF STATE AUDITOR-ELECT.
2.15 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined have the
2.16meanings given them.
2.17 (b) "State auditor-elect" means the person who is not currently state auditor and is the
2.18apparent successful candidate for the office of state auditor following a general election.
2.19 (c) "Commissioner" means the commissioner of the Department of Management and
2.20Budget.
2.21 Subd. 2.Transition expenses.In the fiscal year of an election for state auditor and
2.22subject to availability of funds, the commissioner shall transfer up to $50,000 from the
2.23general contingent account in the general fund to the Department of Management and
2.24Budget. This transfer is subject to the review and advice of the Legislative Advisory
2.25Commission pursuant to section 3.30. In consultation with the state auditor-elect, the
2.26commissioner shall use the transferred funds to pay expenses of the state auditor-elect
2.27associated with preparing for the assumption of official duties as state auditor. The
2.28commissioner may use the transferred funds for expenses necessary and prudent for
2.29establishment of a transition office prior to the election and for dissolution of the office if
2.30the incumbent state auditor is reelected or after the inauguration of a new state auditor.
2.31Expenses of the state auditor-elect may include suitable office space and equipment,
2.32communications and technology support, consulting services, compensation and travel
2.33costs, and other reasonable expenses. Compensation rates for temporary employees hired
2Sec. 2.
S2386-1 1st EngrossmentSF2386 REVISOR JFK 3.1to support the state auditor-elect and rates paid for consulting services for the state
3.2auditor-elect shall be determined by the state auditor-elect.
3.3 Subd. 3.Unused funds.No new obligations shall be incurred for expenses of the state
3.4auditor-elect after the date of the inauguration. By March 31 of the year of the inauguration,
3.5the commissioner shall return to the general contingent account any funds transferred under
3.6this section that the commissioner determines are not needed to pay expenses of the state
3.7auditor-elect.
3.8 Sec. 3. [8.40] EXPENSES OF ATTORNEY GENERAL-ELECT .
3.9 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined have the
3.10meanings given them.
3.11 (b) "Attorney general-elect" means the person who is not currently attorney general and
3.12is the apparent successful candidate for the office of attorney general following a general
3.13election.
3.14 (c) "Commissioner" means the commissioner of the Department of Management and
3.15Budget.
3.16 Subd. 2.Transition expenses.In the fiscal year of an election for attorney general and
3.17subject to availability of funds, the commissioner shall transfer up to $75,000 from the
3.18general contingent account in the general fund to the Department of Management and
3.19Budget. This transfer is subject to the review and advice of the Legislative Advisory
3.20Commission pursuant to section 3.30. In consultation with the attorney general-elect, the
3.21commissioner shall use the transferred funds to pay expenses of the attorney general-elect
3.22associated with preparing for the assumption of official duties as attorney general. The
3.23commissioner may use the transferred funds for expenses necessary and prudent for
3.24establishment of a transition office prior to the election and for dissolution of the office if
3.25the incumbent attorney general is reelected or after the inauguration of a new attorney
3.26general. Expenses of the attorney general-elect may include suitable office space and
3.27equipment, communications and technology support, consulting services, compensation
3.28and travel costs, and other reasonable expenses. Compensation rates for temporary employees
3.29hired to support the attorney general-elect and rates paid for consulting services for the
3.30attorney general-elect shall be determined by the attorney general-elect.
3.31 Subd. 3.Unused funds.No new obligations shall be incurred for expenses of the attorney
3.32general-elect after the date of the inauguration. By March 31 of the year of the inauguration,
3.33the commissioner shall return to the general contingent account any funds transferred under
3Sec. 3.
S2386-1 1st EngrossmentSF2386 REVISOR JFK 4.1this section that the commissioner determines are not needed to pay expenses of the attorney
4.2general-elect.
4.3 Sec. 4. Minnesota Statutes 2024, section 10A.01, subdivision 26, is amended to read:
4.4 Subd. 26.Noncampaign disbursement.(a) "Noncampaign disbursement" means a
4.5purchase or payment of money or anything of value made, or an advance of credit incurred,
4.6or a donation in kind received, by a principal campaign committee for any of the following
4.7purposes:
4.8 (1) payment for accounting and legal services related to operating the candidate's
4.9campaign committee, serving in office, or security for the candidate or the candidate's
4.10immediate family, including but not limited to seeking and obtaining a harassment restraining
4.11order;
4.12 (2) return of a contribution to the source;
4.13 (3) repayment of a loan made to the principal campaign committee by that committee;
4.14 (4) return of a public subsidy;
4.15 (5) payment for food, beverages, and necessary utensils and supplies, entertainment,
4.16and facility rental for a fundraising event;
4.17 (6) services for a constituent by a member of the legislature or a constitutional officer
4.18in the executive branch as provided in section 10A.173, subdivision 1;
4.19 (7) payment for food and beverages consumed by a candidate or volunteers while they
4.20are engaged in campaign activities;
4.21 (8) payment for food or a beverage consumed while attending a reception or meeting
4.22directly related to legislative duties;
4.23 (9) payment of expenses incurred by elected or appointed leaders of a legislative caucus
4.24in carrying out their leadership responsibilities;
4.25 (10) payment by a principal campaign committee of the candidate's expenses for serving
4.26in public office, other than for personal uses;
4.27 (11) costs of child care for the candidate's children when campaigning;
4.28 (12) fees paid to attend a campaign school;
4.29 (13) costs of a postelection party during the election year when a candidate's name will
4.30no longer appear on a ballot or the general election is concluded, whichever occurs first;
4Sec. 4.
S2386-1 1st EngrossmentSF2386 REVISOR JFK 5.1 (14) interest on loans paid by a principal campaign committee on outstanding loans;
5.2 (15) filing fees;
5.3 (16) post-general election holiday or seasonal cards, thank-you notes, or advertisements
5.4in the news media mailed or published prior to the end of the election cycle;
5.5 (17) the cost of campaign material purchased to replace defective campaign material, if
5.6the defective material is destroyed without being used;
5.7 (18) contributions to a party unit;
5.8 (19) payments for funeral gifts or memorials;
5.9 (20) the cost of a magnet less than six inches in diameter containing legislator contact
5.10information and distributed to constituents;
5.11 (21) costs associated with a candidate attending a political party state or national
5.12convention in this state;
5.13 (22) other purchases or payments specified in board rules or advisory opinions as being
5.14for any purpose other than to influence the nomination or election of a candidate or to
5.15promote or defeat a ballot question;
5.16 (23) costs paid to a third party for processing contributions made by a credit card, debit
5.17card, or electronic check;
5.18 (24) costs paid by a candidate's principal campaign committee to support the candidate's
5.19participation in a recount of ballots affecting the candidate's election;
5.20 (25) a contribution to a fund established to support a candidate's participation in a recount
5.21of ballots affecting that candidate's election;
5.22 (26) costs paid by a candidate's principal campaign committee for a single reception
5.23given in honor of the candidate's retirement from public office after the filing period for
5.24affidavits of candidacy for that office has closed;
5.25 (27) a donation from a terminating principal campaign committee to the state general
5.26fund;
5.27 (28) a donation from a terminating principal campaign committee to a county obligated
5.28to incur special election expenses due to that candidate's resignation from state office;
5.29 (29) during a period starting January 1 in the year following a general election and ending
5.30on December 31 of the year of general election, total payments of up to $3,000 for
5.31detection-related security monitoring expenses for a candidate, including home security
5Sec. 4.
S2386-1 1st EngrossmentSF2386 REVISOR JFK 6.1hardware, maintenance of home security monitoring hardware, identity theft monitoring
6.2services, and credit monitoring services; and
6.3 (30) costs paid to repair or replace campaign property that was: (i) lost or stolen, or (ii)
6.4damaged or defaced to such a degree that the property no longer serves its intended purpose.
6.5For purposes of this clause, campaign property includes but is not limited to campaign lawn
6.6signs. The candidate must document the need for these costs in writing or with photographs;
6.7and
6.8 (31) transition expenses and inaugural event expenses as defined in section 10A.174.
6.9 (b) The board must determine whether an activity involves a noncampaign disbursement
6.10within the meaning of this subdivision.
6.11 (c) A noncampaign disbursement is considered to be made in the year in which the
6.12candidate made the purchase of goods or services or incurred an obligation to pay for goods
6.13or services.
6.14 Sec. 5. [10A.174] INAUGURAL EVENT AND TRANSITION EXPENSES.
6.15 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
6.16the meanings given.
6.17 (b) "Inaugural event expenses" means expenses incurred for any event related to the
6.18individual's inauguration held between the general election of a person elected to a statewide
6.19office and January 31 of the year in which the officeholder takes office. In the event that a
6.20person fills a vacancy in a constitutional office, "inaugural event expenses" means expenses
6.21incurred for any event related to the individual's inauguration between the time that it was
6.22confirmed that the individual would assume the constitutional office and the date four weeks
6.23after the individual is sworn into office.
6.24 (c) "Transition expenses" means expenses incurred in preparing for the assumption of
6.25official duties as governor, lieutenant governor, secretary of state, state auditor, or attorney
6.26general. Expenses include but are not limited to establishment of a transition office, the
6.27dissolution of the office, office space and equipment, communications and technology
6.28support, consulting services, compensation and travel costs, and other reasonable expenses.
6.29Transition expenses do not include expenses that are incurred after the officeholder takes
6.30office.
6.31 Subd. 2.Inaugural event and transition expenses; contributions.A candidate or a
6.32candidate's principal campaign committee must not solicit or accept any contributions for
6.33or make any expenditure for inaugural event expenses or transition expenses except through
6Sec. 5.
S2386-1 1st EngrossmentSF2386 REVISOR JFK 7.1the candidate's principal campaign committee or as provided in section 4.51, 5.51, 6.93, or
7.28.40.
7.3 Sec. 6. RULEMAKING.
7.4 The Campaign Finance and Public Disclosure Board must amend Minnesota Rules, part
7.54503.0900, to conform to the requirements of this bill regarding transition expenses. The
7.6board may use the good cause exemption under Minnesota Statutes, section 14.388, for
7.7purposes of this section.
7Sec. 6.
S2386-1 1st EngrossmentSF2386 REVISOR JFK