HF 1374

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/01/2023 11:01am

A bill for an act
relating to campaign finance; enacting a Democracy Dollar coupon program;
repealing the political contribution refund program; authorizing rulemaking;
amending Minnesota Statutes 2022, sections 10A.01, subdivision 11; 10A.02,
subdivision 13; 10A.15, subdivision 1; 10A.20, subdivision 3; 10A.34, subdivision
4; 289A.37, subdivision 2; 289A.50, subdivision 1; 290.01, subdivision 6; proposing
coding for new law as Minnesota Statutes, chapter 10B; repealing Minnesota
Statutes 2022, sections 13.4967, subdivision 2; 290.06, subdivision 23.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 10A.01, subdivision 11, is amended to read:

Subd. 11.

Contribution.

(a) "Contribution" means money, a negotiable instrument, new text begin
Democracy Dollar coupon redemption under chapter 10B, new text end or a donation in kind that is given
to a political committee, political fund, principal campaign committee, local candidate, or
party unit. An allocation by an association of general treasury money to be used for activities
that must be or are reported through the association's political fund is considered to be a
contribution for the purposes of disclosure required by this chapter.

(b) "Contribution" includes a loan or advance of credit to a political committee, political
fund, principal campaign committee, local candidate, or party unit, if the loan or advance
of credit is: (1) forgiven; or (2) repaid by an individual or an association other than the
political committee, political fund, principal campaign committee, local candidate, or party
unit to which the loan or advance of credit was made. If an advance of credit or a loan is
forgiven or repaid as provided in this paragraph, it is a contribution in the year in which the
loan or advance of credit was made.

(c) "Contribution" does not include services provided without compensation by an
individual volunteering personal time on behalf of a candidate, local candidate, ballot
question, political committee, political fund, principal campaign committee, or party unit;
the publishing or broadcasting of news items or editorial comments by the news media; or
an individual's unreimbursed personal use of an automobile owned by the individual while
volunteering personal time.

Sec. 2.

Minnesota Statutes 2022, section 10A.02, subdivision 13, is amended to read:

Subd. 13.

Rules.

(a) Chapter 14 applies to the board. The board may adopt rules to carry
out the purposes of this chapter new text begin and chapter 10B new text end .

(b) In addition to the notice required under chapter 14, the board shall notify the chairs
and ranking minority members of the committees or subcommittees in the senate and house
of representatives with primary jurisdiction over elections within seven calendar days of
taking the following actions:

(1) publication of a notice of intent to adopt rules or a notice of hearing;

(2) publication of proposed rules in the State Register;

(3) issuance of a statement of need and reasonableness; or

(4) adoption of final rules.

Sec. 3.

Minnesota Statutes 2022, section 10A.15, subdivision 1, is amended to read:

Subdivision 1.

Anonymous contributions.

A political committee, political fund, principal
campaign committee, or party unit may not retain an anonymous contribution in excess of
$20, but must forward it to the board for deposit in the general account of the state elections
campaign account. new text begin An anonymous contribution is not an eligible contribution for purposes
of qualifying for the Democracy Dollar coupon program established in chapter 10B.
new text end

Sec. 4.

Minnesota Statutes 2022, section 10A.20, subdivision 3, is amended to read:

Subd. 3.

Contents of report.

(a) The report required by this section must include each
of the items listed in paragraphs (b) to deleted text begin (q) deleted text end new text begin (r) new text end that are applicable to the filer. The board shall
prescribe forms based on filer type indicating which of those items must be included on the
filer's report.

(b) The report must disclose the amount of liquid assets on hand at the beginning of the
reporting period.

(c) The report must disclose the name, address, employer, or occupation if self-employed,
and registration number if registered with the board, of each individual or association that
has made one or more contributions to the reporting entity, including the purchase of tickets
for a fundraising effort, that in aggregate within the year exceed $200 for legislative or
statewide candidates or more than $500 for ballot questions, together with the amount and
date of each contribution, and the aggregate amount of contributions within the year from
each source so disclosed. A donation in kind must be disclosed at its fair market value. An
approved expenditure must be listed as a donation in kind. A donation in kind is considered
consumed in the reporting period in which it is received. The names of contributors must
be listed in alphabetical order. Contributions from the same contributor must be listed under
the same name. When a contribution received from a contributor in a reporting period is
added to previously reported unitemized contributions from the same contributor and the
aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
employer, or occupation if self-employed, of the contributor must then be listed on the
report.

(d) new text begin The report must disclose the aggregate number and value of all Democracy Dollar
coupons redeemed for a contribution under chapter 10B by the reporting entity during the
reporting period.
new text end

new text begin (e) new text end The report must disclose the sum of contributions to the reporting entity during the
reporting period.

deleted text begin (e) deleted text end new text begin (f) new text end The report must disclose each loan made or received by the reporting entity within
the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
together with the name, address, occupation, principal place of business, if any, and
registration number if registered with the board of the lender and any endorser and the date
and amount of the loan. If a loan made to the principal campaign committee of a candidate
is forgiven or is repaid by an entity other than that principal campaign committee, it must
be reported as a contribution for the year in which the loan was made.

deleted text begin (f) deleted text end new text begin (g) new text end The report must disclose each receipt over $200 during the reporting period not
otherwise listed under paragraphs (c) to deleted text begin (e) deleted text end new text begin (f) new text end .

deleted text begin (g) deleted text end new text begin (h) new text end The report must disclose the sum of all receipts of the reporting entity during the
reporting period.

deleted text begin (h) deleted text end new text begin (i) new text end The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom aggregate expenditures, approved
expenditures, independent expenditures, and ballot question expenditures have been made
by or on behalf of the reporting entity within the year in excess of $200, together with the
amount, date, and purpose of each expenditure, including an explanation of how the
expenditure was used, and the name and address of, and office sought by, each candidate
or local candidate on whose behalf the expenditure was made, identification of the ballot
question that the expenditure was intended to promote or defeat and an indication of whether
the expenditure was to promote or to defeat the ballot question, and in the case of independent
expenditures made in opposition to a candidate or local candidate, the candidate's or local
candidate's name, address, and office sought. A reporting entity making an expenditure on
behalf of more than one candidate or local candidate must allocate the expenditure among
the candidates and local candidates on a reasonable cost basis and report the allocation for
each candidate or local candidate. The report must list on separate schedules any independent
expenditures made on behalf of local candidates and any expenditures made for ballot
questions as defined in section 10A.01, subdivision 7, clause (2), (3), or (4).

deleted text begin (i) deleted text end new text begin (j) new text end The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

deleted text begin (j) deleted text end new text begin (k) new text end The report must disclose the amount and nature of an advance of credit incurred
by the reporting entity, continuously reported until paid or forgiven. If an advance of credit
incurred by the principal campaign committee of a candidate is forgiven by the creditor or
paid by an entity other than that principal campaign committee, it must be reported as a
donation in kind for the year in which the advance of credit was made.

deleted text begin (k) deleted text end new text begin (l) new text end The report must disclose the name, address, and registration number if registered
with the board of each political committee, political fund, principal campaign committee,
local candidate, or party unit to which contributions have been made that aggregate in excess
of $200 within the year and the amount and date of each contribution. The report must list
on separate schedules any contributions made to state candidates' principal campaign
committees and any contributions made to local candidates.

deleted text begin (l) deleted text end new text begin (m) new text end The report must disclose the sum of all contributions made by the reporting entity
during the reporting period and must separately disclose the sum of all contributions made
to local candidates by the reporting entity during the reporting period.

deleted text begin (m) deleted text end new text begin (n) new text end The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom noncampaign disbursements have
been made that aggregate in excess of $200 within the year by or on behalf of the reporting
entity and the amount, date, and purpose of each noncampaign disbursement, including an
explanation of how the expenditure was used.

deleted text begin (n) deleted text end new text begin (o) new text end The report must disclose the sum of all noncampaign disbursements made within
the year by or on behalf of the reporting entity.

deleted text begin (o) deleted text end new text begin (p) new text end The report must disclose the name and address of a nonprofit corporation that
provides administrative assistance to a political committee or political fund as authorized
by section 211B.15, subdivision 17, the type of administrative assistance provided, and the
aggregate fair market value of each type of assistance provided to the political committee
or political fund during the reporting period.

deleted text begin (p) deleted text end new text begin (q) new text end Legislative, statewide, and judicial candidates, party units, and political committees
and funds must itemize contributions that in aggregate within the year exceed $200 for
legislative or statewide candidates or more than $500 for ballot questions on reports submitted
to the board. The itemization must include the date on which the contribution was received,
the individual or association that provided the contribution, and the address of the contributor.
Additionally, the itemization for a donation in kind must provide a description of the item
or service received. Contributions that are less than the itemization amount must be reported
as an aggregate total.

deleted text begin (q) deleted text end new text begin (r) new text end Legislative, statewide, and judicial candidates, party units, political committees
and funds, and committees to promote or defeat a ballot question must itemize expenditures
and noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
submitted to the board. The itemization must include the date on which the committee made
or became obligated to make the expenditure or disbursement, the name and address of the
vendor that provided the service or item purchased, and a description of the service or item
purchased, including an explanation of how the expenditure was used. Expenditures and
noncampaign disbursements must be listed on the report alphabetically by vendor.

Sec. 5.

Minnesota Statutes 2022, section 10A.34, subdivision 4, is amended to read:

Subd. 4.

Penalty for violations of chapter new text begin 10B or new text end 211B under board's jurisdiction.

If
a civil penalty is not specified in new text begin chapter 10B, or new text end a section of chapter 211B brought under
the board's jurisdiction by section 10A.022, subdivision 3, the board may impose a civil
penalty of up to $3,000.

Sec. 6.

new text begin [10B.01] DEFINITIONS.
new text end

new text begin Except where otherwise provided, the definitions in section 10A.01 apply to this chapter.
new text end

Sec. 7.

new text begin [10B.02] ISSUANCE OF DEMOCRACY DOLLAR COUPONS.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance of coupons to eligible contributors. new text end

new text begin (a) No later than March
1 of each year, the secretary of state must provide a set of two Democracy Dollar coupons
to every person with an active registration in the Statewide Voter Registration System as
of the previous December 31. Each coupon within the set must be redeemable by a qualifying
principal campaign committee or political party unit for a contribution of $25 to that
committee or party unit, as directed by the individual to whom the coupon was issued. An
individual coupon may not be divided into smaller increments. The secretary of state must
provide an option for an individual to request to receive the coupon in an electronic format.
new text end

new text begin (b) A person may request that the coupon be delivered to a physical or electronic address
that is other than that indicated in the person's voter registration record, provided that the
alternate physical address is in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Opt-in. new text end

new text begin Any individual who is otherwise eligible to vote in Minnesota, but not
registered, may submit a written request to the secretary of state for issuance of a set of
coupons under subdivision 1. A request under this subdivision may be submitted to the
secretary of state between January 1 and July 1 of each year. The secretary of state must
prescribe a form for this purpose. Upon verification that the individual is eligible to receive
a set of coupons, the secretary of state must deliver the coupons to the eligible individual
no later than October 1 of that year.
new text end

Sec. 8.

new text begin [10B.03] FORM OF COUPON; RULEMAKING.
new text end

new text begin (a) The Campaign Finance and Public Disclosure Board must adopt rules using the
expedited process in section 14.389 to establish the form of the Democracy Dollar coupon.
new text end

new text begin (b) At a minimum, the coupon must:
new text end

new text begin (1) require the holder to indicate the name of an eligible candidate or political party unit
to which the value of the coupon is to be assigned;
new text end

new text begin (2) provide space for the holder's name, address, original signature, and a statement by
the holder attesting to the holder's understanding of the laws and rules governing the
Democracy Dollar coupon program;
new text end

new text begin (3) include a clear indication that the coupon has no cash value, is not transferable, and
may be assigned only as provided in the laws and rules governing the coupon program; and
new text end

new text begin (4) be in a form that permits third parties to utilize a secure application programming
interface or other internet-based system to facilitate the assignment and redemption of
coupons.
new text end

Sec. 9.

new text begin [10B.04] ASSIGNMENT, DELIVERY, AND RECEIPT OF COUPON.
new text end

new text begin Subdivision 1. new text end

new text begin Assignment. new text end

new text begin (a) Democracy Dollar coupons are only assignable as
authorized by this section.
new text end

new text begin (b) A person lawfully holding a coupon may assign it to a qualified candidate or political
party unit by completing the information required under section 10B.03 and delivering the
coupon to the board, a qualified candidate, or a representative of a qualified candidate or
political party unit.
new text end

new text begin Subd. 2. new text end

new text begin Delivery. new text end

new text begin A properly assigned Democracy Dollar coupon may be delivered to
the qualified candidate or political party unit by mail, in person, electronically through the
board's website, or electronically using a secure application programming interface or other
internet-based system that meets standards approved by the board. The holder of a coupon
may designate an agent to deliver an assigned coupon in person. The board must establish
a secure, user-friendly online system for electronic delivery of assigned coupons. A qualified
candidate or a representative of a qualified candidate or political party unit may assist a
holder in accessing the online system for delivery of an assigned coupon.
new text end

new text begin Subd. 3. new text end

new text begin Deadline for assignment and redemption. new text end

new text begin A Democracy Dollar coupon is
valid for a contribution redemption only if assigned to a qualified candidate or political
party unit no later than 30 days following the date of the next state general election occurring
after the coupon was issued and submitted for redemption by the qualified candidate or
political party unit by December 31 of that year.
new text end

new text begin Subd. 4. new text end

new text begin Status of coupon if voter becomes ineligible to vote. new text end

new text begin A coupon is invalid if
the holder to which it was issued becomes ineligible to vote in Minnesota before the coupon
is assigned.
new text end

new text begin Subd. 5. new text end

new text begin Assignment is irrevocable. new text end

new text begin The valid assignment and delivery of a coupon is
irrevocable, except that a coupon may be re-assigned to another recipient if the board
determines that the assigned recipient is ineligible to redeem it. In making an assignment,
the holder of the coupon assumes the risk that the coupon may not be redeemed by the
candidate or political party unit to which it is assigned.
new text end

new text begin Subd. 6. new text end

new text begin Chapter 325L applies. new text end

new text begin Chapter 325L applies to Democracy Dollar coupons
assigned, delivered, or submitted for redemption under this chapter in an electronic format.
new text end

Sec. 10.

new text begin [10B.05] NO CASH VALUE.
new text end

new text begin Democracy Dollar coupons have no cash value and are not assets, income, or the property
of the holder to which a coupon is issued.
new text end

Sec. 11.

new text begin [10B.06] PROHIBITIONS.
new text end

new text begin Assignment or transfer of a Democracy Dollar coupon for cash or other consideration
is prohibited. A person may not offer to purchase, buy, or sell a coupon and may not transfer
it as a gift to any other person. A coupon may not be assigned by proxy, power of attorney,
or agent.
new text end

Sec. 12.

new text begin [10B.07] QUALIFICATION OF CANDIDATES AND POLITICAL
PARTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Candidate qualification. new text end

new text begin (a) To be qualified for assignment or redemption
of a Democracy Dollar coupon, a candidate must, as of the time the coupon is assigned and
redeemed:
new text end

new text begin (1) have designated a principal campaign committee that is currently registered under
chapter 10A;
new text end

new text begin (2) be seeking an office for which voluntary spending limits are specified in section
10A.25; and
new text end

new text begin (3) have signed and be currently bound by an agreement governed by section 10A.322.
new text end

new text begin (b) A candidate is no longer qualified to receive by assignment or redeem a coupon if
the candidate fails to advance to a general election following a primary election for the
office to which the candidate is seeking election or if the candidate is determined to be in
violation of the terms of the agreement to limit campaign expenditures provided in section
10A.322.
new text end

new text begin Subd. 2. new text end

new text begin Political party unit qualification. new text end

new text begin A Democracy Dollar coupon may be assigned
to and redeemed by a unit of a major political party unit as defined in section 200.02,
subdivision 7, or a minor political party unit qualifying for inclusion on the income tax or
property tax refund form under section 10A.31, subdivision 3a.
new text end

Sec. 13.

new text begin [10B.08] REDEMPTION OF COUPONS; DISTRIBUTION OF
CONTRIBUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Redemption value cap. new text end

new text begin (a) As used in this section, the "redemption
value cap" means the maximum aggregate dollar value of coupons that may be redeemed
by qualified candidates and political parties in a calendar year.
new text end

new text begin (b) For calendar years 2024 and 2025, and each two-year period thereafter until an
increase is required under this paragraph, the redemption value cap for each year is an
amount equal to eight percent of the total dollar value of all coupons issued by the secretary
of state in that year. If, as of December 31 of an even-numbered year, the dollar value of
all coupons redeemed during that year and the immediately preceding odd-numbered year
exceeds 75 percent of the aggregated redemption value cap for those two years, the
redemption value cap must be increased by an additional two percent of the total value of
all coupons issued by the secretary of state each year, beginning in the next odd-numbered
year and for every year thereafter. The redemption value cap may be subsequently increased
in two percent increments according to the standards in this paragraph but may not exceed
16 percent of the total value of coupons issued unless otherwise expressly authorized by
law. No later than January 30 of each year, the board, in consultation with the commissioner
of management and budget, must certify the applicable redemption value cap that applies
during that year.
new text end

new text begin Subd. 2. new text end

new text begin Redemption procedures. new text end

new text begin A candidate or political party unit that has been
assigned a Democracy Dollar coupon may submit it to the board for redemption. Assigned
coupons submitted directly to the board by the holder to which the coupon was issued are
presumed submitted for redemption on behalf of the assigned candidate or party unit.
new text end

new text begin Subd. 3. new text end

new text begin Verification. new text end

new text begin (a) The board must verify the following before redeeming a
coupon:
new text end

new text begin (1) the qualification of the receiving candidate or political party unit;
new text end

new text begin (2) the eligibility of the person to whom the coupon was issued;
new text end

new text begin (3) whether redemption of the coupon would result in the candidate receiving a
contribution in excess of the amounts authorized by law; and
new text end

new text begin (4) whether redemption of the coupon would cause the total dollar value of redeemed
coupons to exceed the redemption value cap.
new text end

new text begin (b) The board may require the assigned candidate or political party unit to submit
documents or records necessary to complete the verifications required by this subdivision.
The eligibility of the person to whom a coupon is issued must be confirmed by the secretary
of state.
new text end

new text begin (c) The board must provide a notice to the original holder of a coupon and to the assigned
recipient if a coupon cannot be verified as eligible for redemption, the reason the coupon
could not be verified or redeemed, and, if applicable, instructions for re-assigning the coupon
to another eligible recipient.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of contribution. new text end

new text begin Upon determination that the coupon is valid for
redemption, the board must disburse the value of the coupon to the assigned candidate's
principal campaign committee or to the treasurer of the assigned political party unit. The
board may adopt procedures for disbursement of the contribution through an electronic
funds transfer to the committee or party unit. These procedures are exempt from chapter
14, and section 14.386 does not apply.
new text end

new text begin Subd. 5. new text end

new text begin Effect of coupons on contribution reporting and limits. new text end

new text begin The value of the
coupon, once redeemed, must be recorded as a contribution made in the name of the person
to whom the coupon is issued. Redeemed coupons must be included in the calculation of
that person's contributions for purposes of reporting under section 10A.20, subdivision 3,
and for purposes of the contribution limits established in section 10A.27.
new text end

new text begin Subd. 6. new text end

new text begin Redemption and distribution schedule. new text end

new text begin The board must promptly verify all
assigned coupons received by the board, regardless of the method of submission. The board
must redeem all properly verified coupons and distribute contributions on a regular schedule,
no less than two times per month, no less than one time per week beginning 60 days prior
to the date of a state primary or state general election, and, to the extent practical, no less
than one time per week during the campaign period preceding a special primary or special
general election as determined by the board.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin Amounts necessary to redeem coupons and distribute the
resulting contributions required under this chapter are appropriated annually from the general
fund to the board. The amount appropriated to the board may not exceed the redemption
value cap in any year.
new text end

Sec. 14.

new text begin [10B.09] USE OF CONTRIBUTION.
new text end

new text begin A contribution received by a principal campaign committee or political party unit under
this chapter may only be used for purposes authorized under chapter 10A or section 211B.12.
new text end

Sec. 15.

new text begin [10B.10] RETURN OF PROCEEDS; RULEMAKING.
new text end

new text begin (a) A candidate who has redeemed a Democracy Dollar coupon and subsequently
withdraws as a candidate for office, dies, becomes ineligible, loses qualification, is defeated
in a primary or general election, or is elected at a general election must, within a reasonable
period, return any unspent coupon contribution proceeds to the board.
new text end

new text begin (b) The board must adopt rules using the expedited rulemaking process in section 14.389
to establish accounting standards and other requirements for compliance with this section.
new text end

Sec. 16.

new text begin [10B.11] VIOLATIONS; ENFORCEMENT.
new text end

new text begin The board may make audits and investigations with respect to the requirements of this
chapter, consistent with the authority, procedures, and remedies provided in sections 10A.022
and 10A.34.
new text end

Sec. 17.

Minnesota Statutes 2022, section 289A.37, subdivision 2, is amended to read:

Subd. 2.

Erroneous refunds.

(a) Except as provided in paragraph (b), an erroneous
refund occurs when the commissioner issues a payment to a person that exceeds the amount
the person is entitled to receive under law. An erroneous refund is considered an
underpayment of tax on the date issued.

(b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:

(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section deleted text begin 290.06,
subdivision 23; deleted text end 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or

(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.

(c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.

(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under sections 289A.38 to 289A.382.

Sec. 18.

Minnesota Statutes 2022, section 289A.50, subdivision 1, is amended to read:

Subdivision 1.

General right to refund.

(a) Subject to the requirements of this section
and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
who files a written claim for refund will be refunded or credited the overpayment of the tax
determined by the commissioner to be erroneously paid.

(b) The claim must specify the name of the taxpayer, the date when and the period for
which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
was erroneously paid, the grounds on which a refund is claimed, and other information
relative to the payment and in the form required by the commissioner. An income tax, estate
tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
a claim for refund.

(c) When, in the course of an examination, and within the time for requesting a refund,
the commissioner determines that there has been an overpayment of tax, the commissioner
shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
If the amount of the overpayment is less than $1, the commissioner is not required to refund.
In these situations, the commissioner does not have to make written findings or serve notice
by mail to the taxpayer.

(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
care exceeds the tax against which the credit is allowable, the amount of the excess is
considered an overpayment. deleted text begin The refund allowed by section 290.06, subdivision 23, is also
considered an overpayment. deleted text end The requirements of section 270C.33 do not apply to the
refunding of such an overpayment shown on the original return filed by a taxpayer.

(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
penalties, and interest reported in the return of the entertainment entity or imposed by section
290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
$1, the commissioner need not refund that amount.

(f) If the surety deposit required for a construction contract exceeds the liability of the
out-of-state contractor, the commissioner shall refund the difference to the contractor.

(g) An action of the commissioner in refunding the amount of the overpayment does not
constitute a determination of the correctness of the return of the taxpayer.

(h) There is appropriated from the general fund to the commissioner of revenue the
amount necessary to pay refunds allowed under this section.

Sec. 19.

Minnesota Statutes 2022, section 290.01, subdivision 6, is amended to read:

Subd. 6.

Taxpayer.

The term "taxpayer" means any person or corporation subject to a
tax imposed by this chapter. deleted text begin For purposes of section 290.06, subdivision 23, the term
"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
deleted text end

Sec. 20. new text begin POLITICAL CONTRIBUTIONS REFUND; CALENDAR YEAR 2022 AND
2023 CONTRIBUTIONS AND RECEIPTS.
new text end

new text begin Notwithstanding the repeal of the political contribution refund in section 21, the
commissioner of revenue must continue to pay refunds for political contributions made in
calendar year 2022 for claims filed by April 15, 2023, and calendar year 2023 for claims
filed by April 15, 2024. A candidate or political party unit may not issue political contribution
refund receipts after July 1, 2023.
new text end

Sec. 21. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 13.4967, subdivision 2; and 290.06, subdivision 23, new text end new text begin
are repealed.
new text end

Sec. 22. new text begin EFFECTIVE DATE; RULEMAKING.
new text end

new text begin This act is effective January 1, 2024, except that the Campaign Finance and Public
Disclosure Board may proceed to propose and adopt administrative rules required by this
article beginning the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-00732

13.4967 OTHER TAX DATA CODED ELSEWHERE.

Subd. 2.

Political contribution refund.

Certain political contribution refund data in the Revenue Department are classified under section 290.06, subdivision 23.

290.06 RATES OF TAX; CREDITS.

Subd. 23.

Refund of contributions to political parties and candidates.

(a) A taxpayer may claim a refund equal to the amount of the taxpayer's contributions made in the calendar year to candidates and to a political party. The maximum refund for an individual must not exceed $50 and for a married couple, filing jointly, must not exceed $100. A refund of a contribution is allowed only if the taxpayer files a form required by the commissioner and attaches to the form a copy of an official refund receipt form issued by the candidate or party and signed by the candidate, the treasurer of the candidate's principal campaign committee, or the chair or treasurer of the party unit, after the contribution was received. The receipt forms must be numbered, and the data on the receipt that are not public must be made available to the campaign finance and public disclosure board upon its request. A claim must be filed with the commissioner no sooner than January 1 of the calendar year in which the contribution was made and no later than April 15 of the calendar year following the calendar year in which the contribution was made. A taxpayer may file only one claim per calendar year. Amounts paid by the commissioner after June 15 of the calendar year following the calendar year in which the contribution was made must include interest at the rate specified in section 270C.405.

(b) No refund is allowed under this subdivision for a contribution to a candidate unless the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section 10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section 10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not sign an agreement but accepts a contribution for which the contributor improperly claims a refund.

(c) For purposes of this subdivision, "political party" means a major political party as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization within each house of the legislature, the state party organization, and the party organization within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a candidate for judicial office.

"Contribution" means a gift of money.

(d) The commissioner shall make copies of the form available to the public and candidates upon request.

(e) The following data collected or maintained by the commissioner under this subdivision are private: the identities of individuals claiming a refund, the identities of candidates to whom those individuals have made contributions, and the amount of each contribution.

(f) The commissioner shall report to the campaign finance and public disclosure board by each August 1 a summary showing the total number and aggregate amount of political contribution refunds made on behalf of each candidate and each political party. These data are public.

(g) The amount necessary to pay claims for the refund provided in this section is appropriated from the general fund to the commissioner of revenue.

(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, the commissioner may accept the number on the official receipt as documentation that a contribution was made rather than the actual receipt as required by paragraph (a).