HF 2116

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to elections; campaign finance; increasing 
  1.3             disclosure requirements; limiting contributions to 
  1.4             political committees, political funds, and political 
  1.5             party units; releasing a candidate from spending 
  1.6             limits in case of certain independent expenditures; 
  1.7             limiting independent expenditures by political party 
  1.8             units; amending Minnesota Statutes 2004, sections 
  1.9             10A.01, by adding a subdivision; 10A.14, subdivision 
  1.10            1; 10A.20, by adding subdivisions; 10A.25, by adding a 
  1.11            subdivision; 10A.28, subdivision 2; 10A.322, 
  1.12            subdivisions 2, 4, by adding a subdivision; 290.06, 
  1.13            subdivision 23; proposing coding for new law in 
  1.14            Minnesota Statutes, chapter 10A. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2004, section 10A.01, is 
  1.17  amended by adding a subdivision to read: 
  1.18     Subd. 16a.  [ELECTIONEERING COMMUNICATION.] "Electioneering 
  1.19  communication" means a communication that refers to a clearly 
  1.20  identified candidate and is made within 60 days before a general 
  1.21  or special election or 30 days before a primary or special 
  1.22  primary for the office sought by the candidate.  "Electioneering 
  1.23  communication" does not include: 
  1.24     (1) a communication appearing in a news story, commentary, 
  1.25  or editorial distributed by a broadcasting station or newspaper, 
  1.26  unless the broadcasting station or newspaper is owned or 
  1.27  controlled by a political party unit, political committee, or 
  1.28  candidate; 
  1.29     (2) a campaign expenditure; or 
  1.30     (3) an independent expenditure. 
  2.1      Sec. 2.  Minnesota Statutes 2004, section 10A.14, 
  2.2   subdivision 1, is amended to read: 
  2.3      Subdivision 1.  [FIRST REGISTRATION.] The treasurer of a 
  2.4   political committee, political fund, principal campaign 
  2.5   committee, or party unit must register with the board by filing 
  2.6   a statement of organization no later than 14 days 48 hours after 
  2.7   the committee, fund, or party unit has made a contribution, 
  2.8   received contributions, or made expenditures in excess of $100.  
  2.9      Sec. 3.  [10A.165] [COORDINATED ELECTIONEERING 
  2.10  COMMUNICATIONS; CONTRIBUTIONS; EXPENDITURES.] 
  2.11     If an individual, political committee, political fund, or 
  2.12  political party unit makes an expenditure for an electioneering 
  2.13  communication as defined in section 10A.01, subdivision 16a, 
  2.14  that is coordinated with a principal campaign committee or 
  2.15  political party unit, the electioneering communication 
  2.16  constitutes a contribution to, and an expenditure by, the 
  2.17  principal campaign committee of the candidate named in the 
  2.18  electioneering communication or of the political party unit 
  2.19  whose candidate is named in the electioneering communication. 
  2.20     Sec. 4.  Minnesota Statutes 2004, section 10A.20, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 6c.  [ELECTIONEERING COMMUNICATIONS.] An individual, 
  2.23  political committee, political fund, or political party unit 
  2.24  that makes or contracts to make an expenditure for an 
  2.25  electioneering communication in an aggregate amount in excess of 
  2.26  $500 within 60 days before a general or special election or 30 
  2.27  days before a primary or special primary for the office sought 
  2.28  by the candidate identified in the electioneering communication 
  2.29  must, within 24 hours of making the expenditure, file a report 
  2.30  with the board containing the following information: 
  2.31     (1) the amount of each expenditure over $100, the name and 
  2.32  address of the person to whom the expenditure was made or 
  2.33  contracted to be made, and the purpose of the expenditure; 
  2.34     (2) the election or primary to which each electioneering 
  2.35  communication pertains and the name of any candidate to be 
  2.36  identified in the electioneering communication; and 
  3.1      (3) in the case of a report filed by an individual, the 
  3.2   name, address, and employer or occupation, if self-employed, of 
  3.3   the individual making or contracting to make the electioneering 
  3.4   communication. 
  3.5      An additional report containing the information specified 
  3.6   in this subdivision must be filed within 24 hours after each 
  3.7   time an expenditure for an electioneering communication in an 
  3.8   aggregate amount exceeding $500 is made or contracted to be made 
  3.9   within 60 days before a general or special election or 30 days 
  3.10  before a primary or special primary for the office sought by the 
  3.11  candidate. 
  3.12     Sec. 5.  Minnesota Statutes 2004, section 10A.20, is 
  3.13  amended by adding a subdivision to read: 
  3.14     Subd. 6d.  [INDEPENDENT EXPENDITURES; BOARD NOTIFICATION TO 
  3.15  CANDIDATE.] (a) An individual, political committee, political 
  3.16  party unit, or political fund must file a report with the board 
  3.17  each time the individual, political committee, political party 
  3.18  unit, or political fund makes or contracts to make, at any time 
  3.19  up to and including the 20th day before an election, independent 
  3.20  expenditures in an aggregate amount in excess of $500.  The 
  3.21  report must be filed within 48 hours after initially making or 
  3.22  contracting to make such expenditures.  An additional report 
  3.23  must be filed within 48 hours after each time an independent 
  3.24  expenditure in an aggregate amount in excess of $500 is made or 
  3.25  contracted to be made, up to and including the 20th day before 
  3.26  an election.  The report must include the information required 
  3.27  to be reported under subdivision 3, paragraph (g), except that 
  3.28  if the expenditure is reported at the time it is contracted, the 
  3.29  report must include the contract amount.  The report must also 
  3.30  indicate (1) the name and office sought by a candidate named in 
  3.31  the independent expenditure and (2) whether the independent 
  3.32  expenditure expressly advocates the candidate's election or the 
  3.33  defeat of an opponent of the candidate. 
  3.34     (b) An individual, political committee, political party 
  3.35  unit, or political fund must file a report with the board each 
  3.36  time the individual, political committee, political party unit, 
  4.1   or political fund makes or contracts to make, between the 19th 
  4.2   day and the last day before an election, an independent 
  4.3   expenditure in an aggregate amount in excess of $100.  The 
  4.4   report must be filed within 24 hours after initially making or 
  4.5   contracting to make such expenditures.  An additional report 
  4.6   must be filed within 24 hours after making or contracting to 
  4.7   make an independent expenditure in an aggregate amount in excess 
  4.8   of $100 at any time up to and including the 20th day before an 
  4.9   election.  The report must include the information required to 
  4.10  be reported under subdivision 3, paragraph (g), except that if 
  4.11  the expenditure is reported at the time it is contracted, the 
  4.12  report must include the contract amount.  The report must also 
  4.13  indicate (1) the name and office sought by a candidate named in 
  4.14  the independent expenditure and (2) whether the independent 
  4.15  expenditure expressly advocates the candidate's election or the 
  4.16  defeat of an opponent of the candidate. 
  4.17     (c) If the board receives one or more reports under this 
  4.18  subdivision that indicate aggregate independent expenditures in 
  4.19  excess of ten percent of the spending limits specified by 
  4.20  section 10A.25, subdivision 2, for the office sought have been 
  4.21  made in a race, it must provide the notice required in this 
  4.22  paragraph.  Within 24 hours after receipt of one or more such 
  4.23  reports, the board must notify a candidate who has signed a 
  4.24  spending limit agreement under section 10A.322 and whose defeat 
  4.25  is expressly advocated or whose opponent's election is expressly 
  4.26  advocated by the aggregate independent expenditures, that the 
  4.27  candidate's spending limits are increased to 125 percent of the 
  4.28  spending limits specified by section 10A.25, subdivision 2, for 
  4.29  the office sought and the candidate remains eligible for a 
  4.30  public subsidy. 
  4.31     Sec. 6.  Minnesota Statutes 2004, section 10A.20, is 
  4.32  amended by adding a subdivision to read: 
  4.33     Subd. 6e.  [ENCOURAGING VOTER PARTICIPATION.] (a) An 
  4.34  individual or association that makes or contracts to make an 
  4.35  expenditure to encourage precinct caucus attendance, voter 
  4.36  registration, or voting, in an aggregate amount in excess of 
  5.1   $200 during a calendar year must, within 24 hours of making or 
  5.2   contracting to make such an expenditure, file a report with the 
  5.3   board containing: 
  5.4      (1) the amount of each expenditure over $100, the name and 
  5.5   address of the person to whom the expenditure was made or 
  5.6   contracted to be made, and the purpose of the expenditure; and 
  5.7      (2) the election or primary to which each expenditure 
  5.8   pertains. 
  5.9      (b) An additional report containing the information 
  5.10  specified in this subdivision must be filed within 24 hours 
  5.11  after each time an expenditure subject to this subdivision is 
  5.12  made or contracted to be made during the calendar year. 
  5.13     Sec. 7.  Minnesota Statutes 2004, section 10A.25, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 11a.  [EFFECT OF CERTAIN INDEPENDENT EXPENDITURES.] 
  5.16  Upon receiving a notice from the board under section 10A.20, 
  5.17  subdivision 6d, paragraph (c), a candidate who has filed a 
  5.18  spending limit agreement under section 10A.322 has spending 
  5.19  limits increased to 125 percent of the spending limits specified 
  5.20  by section 10A.25, subdivision 2, for the office sought and 
  5.21  remains eligible for a public subsidy. 
  5.22     Sec. 8.  [10A.258] [PARTY UNIT INDEPENDENT EXPENDITURE 
  5.23  LIMITS.] 
  5.24     A political party unit that has signed an agreement under 
  5.25  section 10A.322 and participates in the political contribution 
  5.26  refund program must not make aggregate independent expenditures 
  5.27  in a race in excess of $2,000. 
  5.28     Sec. 9.  [10A.272] [CONTRIBUTION LIMITS; POLITICAL PARTY 
  5.29  UNITS, POLITICAL COMMITTEES, AND POLITICAL FUNDS; RETURN OF 
  5.30  EXCESS CONTRIBUTIONS.] 
  5.31     (a) A political committee or political fund must not accept 
  5.32  aggregate contributions made or delivered by any individual or 
  5.33  association in excess of $1,000 during a calendar year. 
  5.34     (b) A political party unit must not accept aggregate 
  5.35  contributions made or delivered by any individual or association 
  5.36  in excess of $500 during a calendar year. 
  6.1      (c) A political party unit must not accept a contribution 
  6.2   from a political committee, political fund, lobbyist, or large 
  6.3   contributor if the contribution will cause the aggregate 
  6.4   contributions from those types of contributors to exceed 20 
  6.5   percent of the total contributions accepted by the political 
  6.6   party unit during a calendar year.  For purposes of this 
  6.7   paragraph, "large contributor" means an individual who 
  6.8   contributes an amount greater than $250. 
  6.9      (d) A political party unit, political committee, or 
  6.10  political fund that receives aggregate contributions in excess 
  6.11  of the amounts allowed by this section during a calendar year 
  6.12  must, not later than January 31 of the year following the year 
  6.13  when the excess contributions were received:  
  6.14     (1) return any excess amounts to the contributor; or 
  6.15     (2) make a payment to the board in the amount of the 
  6.16  aggregate excess contributions for deposit in the state general 
  6.17  fund. 
  6.18     Sec. 10.  Minnesota Statutes 2004, section 10A.28, 
  6.19  subdivision 2, is amended to read: 
  6.20     Subd. 2.  [EXCEEDING CONTRIBUTION LIMITS.] (a) A political 
  6.21  committee, political fund, or principal campaign committee that 
  6.22  makes a contribution, or a candidate who permits the candidate's 
  6.23  principal campaign committee to accept contributions, in excess 
  6.24  of the limits imposed by section 10A.27 is subject to a civil 
  6.25  penalty of up to four times the amount by which the contribution 
  6.26  exceeded the limits. 
  6.27     (b) A political committee or political fund that makes a 
  6.28  contribution, or a political party unit, political committee, or 
  6.29  political fund that accepts any contribution in excess of the 
  6.30  limits imposed by section 10A.272 is subject to a civil penalty 
  6.31  of up to four times the amount by which the contribution 
  6.32  exceeded the limit. 
  6.33     Sec. 11.  Minnesota Statutes 2004, section 10A.322, is 
  6.34  amended by adding a subdivision to read: 
  6.35     Subd. 1a.  [POLITICAL PARTY AGREEMENT.] As a condition of 
  6.36  issuing political contribution refund receipts under subdivision 
  7.1   4, a political party unit must sign and file with the board a 
  7.2   written agreement in which the political party unit agrees that 
  7.3   it will comply with section 10A.258.  A political party unit may 
  7.4   obtain an agreement form from the board and must file the form 
  7.5   by September 1 preceding a general election in connection with 
  7.6   which the political party unit intends to issue refund receipt 
  7.7   forms.  An agreement may not be filed after that date.  Once 
  7.8   filed, an agreement may not be rescinded.  The board must notify 
  7.9   the commissioner of revenue of any agreement filed under this 
  7.10  subdivision. 
  7.11     Sec. 12.  Minnesota Statutes 2004, section 10A.322, 
  7.12  subdivision 2, is amended to read: 
  7.13     Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] (a) The 
  7.14  agreement, insofar as it relates to the expenditure limits in 
  7.15  section 10A.25, as adjusted by section 10A.255, and the 
  7.16  contribution limit in section 10A.27, subdivision 10, remains 
  7.17  effective for candidates until the dissolution of the principal 
  7.18  campaign committee of the candidate or the end of the first 
  7.19  election cycle completed after the agreement was filed, 
  7.20  whichever occurs first. 
  7.21     (b) The agreement, insofar as it relates to the independent 
  7.22  expenditure limits in section 10A.258, remains effective for 
  7.23  political party units until the end of the first election cycle 
  7.24  completed after the agreement was filed. 
  7.25     Sec. 13.  Minnesota Statutes 2004, section 10A.322, 
  7.26  subdivision 4, is amended to read: 
  7.27     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board must 
  7.28  make available to a political party on request that has filed an 
  7.29  agreement under subdivision 1a and to any candidate for whom an 
  7.30  agreement under this section is effective, a supply of official 
  7.31  refund receipt forms that state in boldface type that (1) a 
  7.32  contributor who is given a receipt form is eligible to claim a 
  7.33  refund as provided in section 290.06, subdivision 23, and (2) if 
  7.34  the contribution is to a candidate, that the candidate has 
  7.35  signed an agreement to limit campaign expenditures as provided 
  7.36  in this section; or, if the contribution is to a political party 
  8.1   unit, that the political party unit has signed an agreement to 
  8.2   limit independent expenditures as provided in subdivision 1a.  
  8.3   The forms must provide duplicate copies of the receipt to be 
  8.4   attached to the contributor's claim.  A candidate who or 
  8.5   political party unit that does not sign an agreement under this 
  8.6   section and who willfully issues an official refund receipt form 
  8.7   or a facsimile of one to any of the candidate's or political 
  8.8   party units contributors is guilty of a misdemeanor. 
  8.9      Sec. 14.  Minnesota Statutes 2004, section 290.06, 
  8.10  subdivision 23, is amended to read: 
  8.11     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
  8.12  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
  8.13  amount of the taxpayer's contributions made in the calendar year 
  8.14  to candidates and to a political party.  The maximum refund for 
  8.15  an individual must not exceed $50 and for a married couple, 
  8.16  filing jointly, must not exceed $100.  A refund of a 
  8.17  contribution is allowed only if the taxpayer files a form 
  8.18  required by the commissioner and attaches to the form a copy of 
  8.19  an official refund receipt form issued by the candidate or party 
  8.20  and signed by the candidate, the treasurer of the candidate's 
  8.21  principal campaign committee, or the chair or treasurer of the 
  8.22  party unit, after the contribution was received.  The receipt 
  8.23  forms must be numbered, and the data on the receipt that are not 
  8.24  public must be made available to the campaign finance and public 
  8.25  disclosure board upon its request.  A claim must be filed with 
  8.26  the commissioner no sooner than January 1 of the calendar year 
  8.27  in which the contribution was made and no later than April 15 of 
  8.28  the calendar year following the calendar year in which the 
  8.29  contribution was made.  A taxpayer may file only one claim per 
  8.30  calendar year.  Amounts paid by the commissioner after June 15 
  8.31  of the calendar year following the calendar year in which the 
  8.32  contribution was made must include interest at the rate 
  8.33  specified in section 270.76. 
  8.34     (b) No refund is allowed under this subdivision for a 
  8.35  contribution to a candidate or political party unless the 
  8.36  candidate or political party unit: 
  9.1      (1) has signed an agreement to limit campaign expenditures 
  9.2   as provided in section 10A.322; 
  9.3      (2) in the case of a candidate, is seeking an office for 
  9.4   which voluntary spending limits are specified in section 10A.25; 
  9.5   and 
  9.6      (3) in the case of a candidate, has designated a principal 
  9.7   campaign committee.  
  9.8      This subdivision does not limit the independent 
  9.9   expenditures of a political party unit or the campaign 
  9.10  expenditures of a candidate who does not sign an agreement but 
  9.11  accepts a contribution for which the contributor improperly 
  9.12  claims a refund.  
  9.13     (c) For purposes of this subdivision, "political party" 
  9.14  means a major political party as defined in section 200.02, 
  9.15  subdivision 7, or a minor political party qualifying for 
  9.16  inclusion on the income tax or property tax refund form under 
  9.17  section 10A.31, subdivision 3a.  
  9.18     A "major party" or "minor party" includes the aggregate of 
  9.19  that party's organization within each house of the legislature, 
  9.20  the state party organization, and the party organization within 
  9.21  congressional districts, counties, legislative districts, 
  9.22  municipalities, and precincts.  
  9.23     "Candidate" means a candidate as defined in section 10A.01, 
  9.24  subdivision 10, except a candidate for judicial office.  
  9.25     "Contribution" means a gift of money. 
  9.26     (d) The commissioner shall make copies of the form 
  9.27  available to the public and candidates upon request. 
  9.28     (e) The following data collected or maintained by the 
  9.29  commissioner under this subdivision are private:  the identities 
  9.30  of individuals claiming a refund, the identities of candidates 
  9.31  to whom those individuals have made contributions, and the 
  9.32  amount of each contribution.  
  9.33     (f) The commissioner shall report to the campaign finance 
  9.34  and public disclosure board by each August 1 a summary showing 
  9.35  the total number and aggregate amount of political contribution 
  9.36  refunds made on behalf of each candidate and each political 
 10.1   party.  These data are public. 
 10.2      (g) The amount necessary to pay claims for the refund 
 10.3   provided in this section is appropriated from the general fund 
 10.4   to the commissioner of revenue. 
 10.5      (h) For a taxpayer who files a claim for refund via the 
 10.6   Internet or other electronic means, the commissioner may accept 
 10.7   the number on the official receipt as documentation that a 
 10.8   contribution was made rather than the actual receipt as required 
 10.9   by paragraph (a). 
 10.10     Sec. 15.  [INTERNET CAMPAIGN REPORTING AND PUBLIC SUBSIDY 
 10.11  PAYMENT STUDY.] 
 10.12     A work group is established to study the feasibility of 
 10.13  creating an online campaign finance reporting and public subsidy 
 10.14  payment system.  The work group must study the initial costs and 
 10.15  long-term savings of creating a system for filing online all 
 10.16  reports required by Minnesota Statutes, chapter 10A, and for 
 10.17  electronically making subsidy payments under Minnesota Statutes, 
 10.18  chapter 10A.  The work group must report to the chairs of the 
 10.19  Civil Law and Elections Committee and the State Government 
 10.20  Finance Committee in the house of representatives and the chairs 
 10.21  of the Elections Committee and the State Government Budget 
 10.22  Division of the Finance Committee in the senate by January 15, 
 10.23  2006. 
 10.24     The work group shall consist of one member of the Campaign 
 10.25  Finance and Public Disclosure Board designated by the chair of 
 10.26  the board, and three members appointed by the governor, three 
 10.27  members appointed by the speaker of the house, and three members 
 10.28  appointed by the senate Committee on Committees. 
 10.29     The Campaign Finance and Public Disclosure Board and the 
 10.30  Department of Revenue must provide staff resources to the work 
 10.31  group.