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Committee advances bill to bar state-funded organizations from spending on elections; amendments fail

February 17, 2025 | 2025 Legislature MN, Minnesota


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Committee advances bill to bar state-funded organizations from spending on elections; amendments fail
The House Elections and Government Operations Committee voted to move House File 72 to the General Register on a 6-5 roll call after a day-long discussion about so-called "dark money" and state appropriations.

House File 72, presented by Representative Ingham, would bar organizations that receive state appropriations from using those state funds to influence elections. "House File 72 is about one thing and one thing only, 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," Representative Ingham said.

The bill's sponsor, Representative Ingham, framed the measure as a transparency and conflict-of-interest reform. He told the committee that in 2023 about $1.1 billion in state appropriations were made to organizations that, under current law, could also contribute to candidates and party units. "This bill will bring to heel a large portion of the unethical and irresponsible dark money campaign apparatus," he said.

Committee members pressed on the legal and practical reach of the proposal. Representative Greenman and other members noted federal tax rules that already limit political activity by certain nonprofit types. Nonpartisan staff and a witness from the Campaign Finance Board explained the complexity: some nonprofit entities may contribute directly in Minnesota under Chapter 10a exceptions, while other nonprofit or affiliated entities can route funds through political funds or independent expenditure vehicles.

Jess Sigurdsson, executive director of the Campaign Finance Board, told the committee that "[s]ubdivision 15 provides that a nonprofit corporation is exempted from the prohibition on making contributions" under limited circumstances and described reporting obligations when organizations move money into political funds.

Two floor amendments that would have broadened or narrowed the bill's reach failed. Representative Grama's A1 amendment — which would have expanded the bill to include corporations and a broader set of tax expenditures, credits and deductions — was defeated on a roll call (5 ayes, 6 nays). Representative Coulter's A2 amendment, which would have limited spending on elections to individuals rather than organizations, also failed (5 ayes, 6 nays).

After the failed amendments, Representative Altendorf moved the bill to the General Register. On the final roll call the bill passed 6-5. The roll call recorded the following votes: Ayes — Chair Quam, Vice Chair Altendorf, Representative Davis, Representative Gordon, Representative McDonald, Representative Roach; Nays — Representative Acum, Representative Coulter, Representative Greenman, Representative Lee, Representative Verneig.

Committee discussion emphasized intent rather than immediate implementation. Representative Ingham said he is open to working with colleagues to narrow or refine definitions, and he pointed the committee to reporting and investigative work documenting alleged overlaps between appropriated funds and later political spending.

The committee did not adopt language to expand the bill to corporate tax expenditures or to create a comprehensive disclosure regime during this hearing; sponsors and opponents said they would continue discussions offline.

Votes at a glance: House File 72 — moved to the General Register (motion carried 6-5, roll call recorded above).

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Scribe from Workplace AI
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