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Committee advances HF72 to increase disclosure on outside election spending

February 17, 2025 | 2025 Legislature MN, Minnesota


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Committee advances HF72 to increase disclosure on outside election spending
The Minnesota House Elections Committee on Monday voted 6-5 to move House File 72 to the general register after a hearing and debate over several amendments.

Representative Ingen, the sponsor, told the committee HF72 is aimed at “eliminating the inherent conflict of interest that arises when politicians are able to appropriate money to the same organizations who finance and fund their reelection efforts.” She said the bill would “ensure that the tax dollars received by nonprofit organizations are not being spent on influencing the outcomes of elections, but rather being used to benefit the public good.”

The bill, as presented by Representative Ingen, would require disclosure that traces certain contributions for independent expenditures back to their original source when contributions exceed a threshold (the sponsor and other lawmakers described a $5,000 threshold used in similar proposals). Ingen said the measure is modeled on an Arizona ballot measure and would not limit spending; it would require additional transparency about who funds outside spending in Minnesota elections.

Committee members debated the bill’s scope and potential overlap with federal tax and campaign finance law. Several members noted that 501(c)(3) charities are already prohibited by IRS rules from making campaign expenditures, while 501(c)(4) social welfare organizations and certain associations operate under different rules.

Jeff Sigurdsson, executive director of the Campaign Finance Board, told the committee there are statutory exceptions and reporting rules under Minnesota law, referencing “§ 211B.15, subdivision 15,” which allows limited nonprofit contributions under specific conditions and requires formations of political funds for certain associations that contribute over specified amounts. He said which groups may contribute under state law “depends on the type of organization.”

Lawmakers offered and debated multiple amendments intended to broaden or narrow the bill’s reach. Representative Grama offered an amendment to expand the bill to apply to corporations and to include tax expenditures such as credits and deductions; proponents argued it would capture entities that receive state benefits beyond direct grants. Ingen and others said that expansion would be outside the narrow focus of the bill and asked for a no vote; the amendment failed on a roll call. Representative Coulter offered an amendment that would have sharply limited outside political spending by entities receiving state benefits; committee members expressed constitutional and litigation concerns, and that amendment also failed on a roll call.

After debate and the failed amendments, Representative Alten Dorf moved HF72 to the general register; a roll call recorded six ayes and five nays and the motion passed.

The committee did not adopt any of the amendments debated during the hearing. Members who raised concerns asked for additional drafting and off-line work to reconcile the bill with federal tax restrictions and reporting mechanics. Representative Ingen said she would continue to work with colleagues on amendments and referred to published reporting she said documented instances where state-funded entities and related political committees shared addresses and activity.

The next steps are procedural: HF72 will appear on the general register for potential floor action, where further amendments or votes could occur.

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