Purpose

This bill would dramatically change how entities (including many types of corporations, nonprofits, partnerships, foreign entities doing business in Minnesota, etc.) can use their powers in Minnesota. The core idea is to retract most powers that entities currently have and only regrant those necessary for legitimate business or charitable purposes. It also sets strict limits on any involvement in elections or ballot measures and creates a pathway for political funds or committees to engage in such activities under narrow conditions.

Key Definitions and Scope

• Entity: Broadly defined to include Minnesota-based and foreign entities formed under Minnesota law or operating in Minnesota (e.g., corporations, LLCs, nonprofits, trusts, partnerships, unincorporated groups).
• Election activity: Paying or expending money or other value to support or oppose a candidate, political party, or political committee.
• Ballotissue activity: Paying or expending money or other value to support or oppose a ballot question or initiative.
• Entity benefit: Advantages that exist only because Minnesota confers them (e.g., perpetual duration, tax credits, etc.).
• Organizational documents: The documents that create an entity (articles of incorporation, etc.).
• Publication exception: Bona fide news stories, commentary, or editorials distributed through news outlets or publications, unless controlled by a political party, committee, or candidate.

Main Provisions and What the Bill Seeks to Accomplish

• Powers retraction (Subd. 2): An entity exists only by grant of the state and has no powers or privileges except what the state expressly provides. Election activity or ballotissue activity are not considered necessary or convenient for an entity’s lawful business or charitable purpose, so those powers are not included.
• Powers regrant (Subd. 3): The state revokes all previously granted powers and then regrants only the powers necessary to carry out the entity’s lawful business or charitable purposes. The regrant happens at the same time as revocation. Crucially, nothing in this section, except as provided in Subd. 4, grants or recognizes any power to engage in election or ballotissue activity. An entity only has powers specifically granted.
• Scope of regranted powers (Subd. 3b): Entities get the powers given by the state unless their own organizational documents limit them. There is no broad authority to engage in election or ballotissue activities unless allowed by Subd. 4.
• Date-related limitation (Subd. 3c-3e): Any authorization to engage in election or ballotissue activity after August 1, 2026 is not provided. Existing contracts or obligations entered before August 1, 2026 are not invalidated by these changes, but future election activity remains restricted. The power to wind up and dissolve an entity remains intact.
• Political exception (Subd. 4): A political fund or committee registered under Minnesota or federal law can be granted power to engage in election and ballotissue activities, but only if it exists solely for that purpose and claims no entity benefits other than limited liability. Other non-political entities cannot gain this authority.
• Publication exception (Subd. 5): Normal news reporting, commentary, or editorials distributed through news outlets are not considered election or ballotissue activity, unless the outlet is controlled by a political party, committee, or candidate.
• Forfeiture (Subd. 6): If an entity uses election or ballotissue activity without permission, it forfeits all entity benefits.
• Severability (Subd. 7): If a provision is held invalid, the rest of the section remains in effect. No prior grant of corporate powers is automatically revived, and nothing in this section should be read to grant broader powers than those expressly conferred.

Significant Changes to Existing Law

• Broad powers of entities to participate in elections or ballot initiatives would be withdrawn unless expressly granted under Subd. 4.
• All existing entity powers are revoked unless explicitly regranted, creating a conditional framework for what entities can do.
• Election-related power would be tightly restricted, effectively limiting corporate or organizational influence on elections unless the entity is a political fund/committee meeting the Subd. 4 criteria.
• Organizational documents attempting to confer election or ballotissue powers would be void.
• Clear enforcement and penalties: unauthorized election activity would trigger loss of entity benefits.
• A hard cutoff date (August 1, 2026) is established for any potential election-related authority, signaling a transition period.

Practical Implications

• Entities would need to operate strictly within the narrowly defined powers granted by the state for ordinary business or charitable purposes.
• Political funds or committees could engage in election-related activities, but only under tight conditions that emphasize their narrow purpose and limited liability.
• Normal media coverage and editorial content would not count as election activity, provided they are not controlled by political actors.

Relevant Terms - entity - ballotissue activity - election activity - powers retraction - powers regrant - conditional grant - organizational documents - foreign entities - entity benefit - political fund or committee - publication exception - forfeiture - severability - August 1, 2026 - wind up / dissolve