Committee hears bill to require timing of stock purchases and sales by elected officials; laid over for possible inclusion

Senate File 1259, considered Feb. 25 by the Senate Elections Committee, would require elected officials to report the sale or purchase dates for individual stocks when their holdings exceed $10,000, a sponsor said.

Senator Drayheim, the bill sponsor, said the proposal aims to increase transparency around timing of securities transactions so the public can see whether officials bought or sold stocks in ways that could present conflicts or insider-appearance concerns.

Under current law cited in committee discussion, chapter 10E.09, subdivision 5 and related provisions require disclosure of many assets and securities but do not always record the timing of purchases and sales. The bill would add a line requiring record of when stock was bought or sold; sponsors said the change is intended to help identify possible correlations between official actions and personal financial transactions.

Committee members asked about scope and edge cases. Senators raised whether stock options, mutual funds and certain insurance or retirement vehicles would be covered. Campaign finance staff explained Minnesota law’s definition of “securities” excludes mutual funds and exchange-traded funds in typical circumstances; stock shares held inside mutual funds generally would not be listed. Officials said that if a person directly controls purchases of individual stocks inside a vehicle such as a variable universal life policy, those holdings would be reportable.

Jeff Sigurdsson of the Campaign Finance Board told the committee the board's jurisdiction is limited for the enforcement path described in the bill and that the bill’s enforcement appears to route matters outside the board to the attorney general and the administrative hearings process as drafted.

The committee adopted the bill's A1 author's amendment and laid the measure over for possible inclusion or further drafting; no final committee recommendation to pass was taken in Elections.

Sponsor Drayheim said he would be willing to consider expanding reportable instruments — including stock options — and work with the campaign finance board and other members to refine definitions and thresholds.

The committee did not set a final hearing date for the bill; committee staff and the sponsor indicated more technical conversations about definitions (stocks, securities, options, mutual funds and insurance products) are needed before a final recommendation.

Action at a glance: A1 author's amendment — adopted (voice vote). Bill — held/laid over for possible inclusion; no final committee vote recorded.