1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to campaign finance; clarifying terms; 1.3 changing filing, reporting, and recordkeeping 1.4 provisions; facilitating reports of last-minute 1.5 contributions; clarifying campaign finance and 1.6 economic interest reporting requirements; requiring 1.7 registration and reporting by inaugural, legal, 1.8 defense, and other committees that benefit certain 1.9 incumbents; changing certain limits, procedures, and 1.10 deadlines; requiring return of public subsidies under 1.11 certain conditions; clarifying certain definitions and 1.12 prohibitions; providing equitable relief; clarifying 1.13 and authorizing exceptions to the ban on gifts; 1.14 authorizing certain refunds; limiting liability for 1.15 penalties; providing civil penalties and clarifying 1.16 criminal penalties; modifying the definition of major 1.17 political party; removing obsolete language; amending 1.18 Minnesota Statutes 1998, sections 10A.01, subdivisions 1.19 4, 7, and 18; 10A.03, subdivision 3; 10A.04, 1.20 subdivisions 5 and 7; 10A.065, subdivisions 1, 3, and 1.21 by adding a subdivision; 10A.071; 10A.08; 10A.09, 1.22 subdivisions 5 and 7; 10A.14, subdivision 4; 10A.15, 1.23 subdivisions 3, 5, and by adding a subdivision; 1.24 10A.19, by adding a subdivision; 10A.20, subdivisions 1.25 3, 5, 12, and by adding a subdivision; 10A.23; 10A.25, 1.26 subdivisions 2, 2a, and 10; 10A.265; 10A.27, 1.27 subdivisions 1, 9, and 10; 10A.275, subdivision 1; 1.28 10A.29; 10A.31, subdivisions 7 and 10; 10A.315; 1.29 10A.322, subdivisions 1 and 4; 10A.324, subdivision 1; 1.30 10A.34; 200.02, subdivision 7; 211A.02, subdivision 2; 1.31 211B.15, subdivisions 6, 7, 17, and by adding a 1.32 subdivision; 290.06, subdivision 23; and 471.895; 1.33 proposing coding for new law in Minnesota Statutes, 1.34 chapter 10A; repealing Minnesota Statutes 1998, 1.35 sections 10A.09, subdivision 3; and 10A.25, 1.36 subdivisions 4, 6, and 13. 1.37 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.38 Section 1. Minnesota Statutes 1998, section 10A.01, 1.39 subdivision 4, is amended to read: 1.40 Subd. 4. [ASSOCIATED BUSINESS.] "Associated business" 1.41 means any association in connection with which the individual is 2.1 compensated in excess of $50 except for actual and reasonable 2.2 expenses in any month as a director, officer, owner, member, 2.3 partner, employeror, employee, independent contractor, or 2.4 consultant, or is a holder of securities worth $2,500 or more at 2.5 fair market value. 2.6 Sec. 2. Minnesota Statutes 1998, section 10A.01, 2.7 subdivision 7, is amended to read: 2.8 Subd. 7. [CONTRIBUTION.] "Contribution" means a transfer 2.9 of funds or a donation in kind. 2.10 "Contribution" includes any loan or advance of credit to a 2.11 political committee, political fund, or principal campaign 2.12 committee, which loan or advance of credit is (a) forgiven, or 2.13 (b) paid by an individual or an association other than the 2.14 political committee, political fund, or principal campaign 2.15 committee to which the loan or advance of credit is made. If an 2.16 advance of credit or a loan is forgiven or paid as provided in 2.17 this subdivision, it is a contribution in the year in which the 2.18 loan or advance of credit is made. 2.19 A contribution made for the purpose of defeating a 2.20 candidate is considered made for the purpose of influencing the 2.21 nomination or election of that candidate or any opponent of that 2.22 candidate. 2.23 "Contribution" does not include services provided without 2.24 compensation by an individual volunteering personal time on 2.25 behalf of a candidate, ballot question, political committee, or 2.26 political fund, or. 2.27 "Contribution" does not include the uncompensated use by a 2.28 candidate or an individual volunteering personal time on behalf 2.29 of a candidate, ballot question, political committee, or 2.30 political fund, of the candidate or volunteer's own vehicle, 2.31 computer, software, fax machine, copy machine, printer, 2.32 telephone, or private residence. 2.33 "Contribution" does not include the publishing or 2.34 broadcasting of news items or editorial comments by the news 2.35 media. 2.36 Sec. 3. Minnesota Statutes 1998, section 10A.01, 3.1 subdivision 18, is amended to read: 3.2 Subd. 18. [PUBLIC OFFICIAL.] "Public official" means any: 3.3 (a) member of the legislature; 3.4 (b) constitutional officer in the executive branch and the 3.5 officer's chief administrative deputy; 3.6 (c) member, chief administrative officer or deputy chief 3.7 administrative officer of a state board or commission which has 3.8 at least one of the following powers: (i) the power to adopt, 3.9 amend or repeal rules, or (ii) the power to adjudicate contested 3.10 cases or appeals; 3.11 (d) commissioner, deputy commissioner, or assistant 3.12 commissioner of any state department as designated pursuant to 3.13 section 15.01; 3.14 (e) individual employed in the executive branch who is 3.15 authorized to adopt, amend or repeal rules or adjudicate 3.16 contested cases; 3.17 (f) executive director of the state board of investment; 3.18 (g) executive director of the Indian affairs intertribal 3.19 board; 3.20 (h) commissioner of the iron range resources and 3.21 rehabilitation board; 3.22 (i) commissioner of mediation services; 3.23 (j) deputy of any official listed in clauses (e) to (i); 3.24 (k) judge of the workers' compensation court of appeals; 3.25 (l) administrative law judge or compensation judge in the 3.26 state office of administrative hearings or referee in the 3.27 department of economic security; 3.28 (m) solicitor general or deputy, assistant or special 3.29 assistant attorney general; 3.30 (n) individual employed by the legislature as secretary of 3.31 the senate, legislative auditor, chief clerk of the house, 3.32 revisor of statutes, or researcher, legislative analyst, or 3.33 attorney in the office of senate counsel and research or house 3.34 research; 3.35 (o) member, regional administrator, division director, 3.36 general counsel, or operations manager of the metropolitan 4.1 council; 4.2 (p) the director of the racing commission, the director of 4.3 the gambling control board, the director of the state lottery, 4.4 and the deputy director of the state lottery; 4.5 (q) director of the division of alcohol and gambling 4.6 enforcement in the department of public safety; 4.7 (r) member or executive director of the higher education 4.8 facilities authority; 4.9 (s) member of the board of directors or president of the 4.10 Minnesota world trade center corporation or Minnesota 4.11 Technology, Inc.; 4.12 (t) member of the board of directors or executive director 4.13 of the Minnesota state high school league; or 4.14(t)(u) member or chief administrator of a metropolitan 4.15 agency. 4.16 Sec. 4. Minnesota Statutes 1998, section 10A.03, 4.17 subdivision 3, is amended to read: 4.18 Subd. 3. [NOTICE; LATE FILING.] The board shall notify by 4.19 certified mailor personal serviceany lobbyist who fails to 4.20 file a registration form within five days after becoming a 4.21 lobbyist. If a lobbyist fails to file a form withinseventen 4.22 days afterreceiving thisthe notice was mailed, the board may 4.23 impose a late filing fee at $5 per day, not to exceed $100, 4.24 commencing with theeighth11th day afterreceivingthe notice 4.25 was mailed.The board shall further notify by certified mail or4.26personal service any lobbyist who fails to file a form within 214.27days of receiving a first notice that the lobbyist may be4.28subject to a criminal penalty for failure to file the form. A4.29lobbyist who knowingly fails to file a form within seven days4.30after receiving a second notice from the board is guilty of a4.31misdemeanor.4.32 Sec. 5. Minnesota Statutes 1998, section 10A.04, 4.33 subdivision 5, is amended to read: 4.34 Subd. 5. [LATE FILING.] The board shall notify by 4.35 certified mailor personal serviceany lobbyist or principal who 4.36 fails after seven days after a filing date imposed by this 5.1 section to file a report or statement required by this section. 5.2 If a lobbyist or principal fails to file a report withinseven5.3 ten days afterreceiving thisthe notice was mailed, the board 5.4 may impose a late filing fee of $5 per day, not to exceed $100, 5.5 commencing with theeighth11th day afterreceivingthe notice 5.6 was mailed.The board shall further notify by certified mail or5.7personal service any lobbyist who fails to file a report within5.821 days after receiving a first notice that the lobbyist may be5.9subject to a criminal penalty for failure to file the report. A5.10lobbyist who knowingly fails to file such a report or statement5.11within seven days after receiving a second notice from the board5.12is guilty of a misdemeanor.5.13 Sec. 6. Minnesota Statutes 1998, section 10A.04, 5.14 subdivision 7, is amended to read: 5.15 Subd. 7. [FINANCIAL RECORDS.] The board may randomly audit 5.16 the financial records of lobbyists and principals required to 5.17 report under this section. Lobbyists and principals shall 5.18 retain for four years after the report was filed all records 5.19 concerning the matters reported under this chapter, including 5.20 vouchers, canceled checks, bills, invoices, worksheets, and 5.21 receipts. 5.22 Sec. 7. Minnesota Statutes 1998, section 10A.065, 5.23 subdivision 1, is amended to read: 5.24 Subdivision 1. [REGISTERED LOBBYIST CONTRIBUTIONS; 5.25 LEGISLATIVE SESSION.] (a) A candidate for the legislature or for 5.26 constitutional office, a candidate's principal campaign 5.27 committee, any other political committee with the candidate's 5.28 name or title, any committee authorized by the candidate, or a 5.29 political committee established by all or a part of the party 5.30 organization within a house of the legislature, shall not 5.31 solicit or accept a contribution on behalf of a candidate's 5.32 principal campaign committee, any other political committee with 5.33 the candidate's name or title, any committee authorized by the 5.34 candidate, or a political committee established by all or a part 5.35 of the party organization within a house of the legislature, 5.36 from a registered lobbyist, political committee, or political 6.1 fund during a regular session of the legislature. 6.2 (b) A lobbyist, political committee, or political fund 6.3 shall not make a contribution prohibited by this section. 6.4 (c) A candidate's principal campaign committee may make 6.5 contributions to and receive contributions from a political 6.6 committee established by all or a part of the party organization 6.7 within a house of the legislature during a regular session of 6.8 the legislature. 6.9 (d) For a candidate for governor or lieutenant governor, 6.10 the prohibition in this subdivision extends to the 14 days 6.11 immediately following the adjournment of the legislature in 6.12 either year of the biennium. 6.13 Sec. 8. Minnesota Statutes 1998, section 10A.065, 6.14 subdivision 3, is amended to read: 6.15 Subd. 3. [CIVIL PENALTY.] A candidateor, political 6.16 committee, political fund, or lobbyist that violates this 6.17 section is subject to a civil fine of up to $500. If the board 6.18 makes a public finding that there is probable cause to believe a 6.19 violation of this section has occurred, the board shall bring an 6.20 action, or transmit the finding to a county attorney who shall 6.21 bring an action, in the district court of Ramsey county, to 6.22 impose a civil fine as prescribed by the board. Fines paid 6.23 under this section must be deposited in the general fund in the 6.24 state treasury. 6.25 Sec. 9. Minnesota Statutes 1998, section 10A.065, is 6.26 amended by adding a subdivision to read: 6.27 Subd. 6. [FEDERAL OFFICES.] This section does not prohibit 6.28 a candidate from soliciting or accepting a contribution to a 6.29 campaign for a federal office. 6.30 Sec. 10. Minnesota Statutes 1998, section 10A.071, is 6.31 amended to read: 6.32 10A.071 [CERTAIN GIFTS BY LOBBYISTS AND PRINCIPALS 6.33 PROHIBITED.] 6.34 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 6.35 subdivision apply to this section. 6.36 (b) "Gift" means money, real or personal property, a 7.1 service, a loan, a forbearance or forgiveness of indebtedness, 7.2 or a promise of future employment, that is given and received 7.3 without the giver receiving consideration of equal or greater 7.4 value in return. 7.5 (c) "Official" means a public official,or an employee of 7.6 the legislature, or a local official of a metropolitan7.7governmental unit. 7.8 Subd. 2. [PROHIBITION.] A lobbyist or principal may not 7.9 give a gift or request another to give a gift to an official. An 7.10 official may not accept a gift from a lobbyist or principal. An 7.11 individual is subject to the requirements of this section by 7.12 virtue of being an officer, employee, or member of an 7.13 association that is a principal only when acting as an agent or 7.14 on behalf of the association. 7.15 Subd. 3. [EXCEPTIONS.] (a) The prohibitions in this 7.16 section do not apply if the gift is: 7.17 (1) a contribution as defined in section 10A.01, 7.18 subdivision 7, or 211A.01, subdivision 5, or as defined by 7.19 federal law for contributions to candidates for federal offices; 7.20 (2) services to assistanthe official in the performance 7.21 of official duties, including but not limited to providing 7.22 advice, consultation, information, and communication in 7.23 connection with legislation, and services to constituents; 7.24 (3) services of insignificant monetary value; 7.25 (4) a plaque, framed certificate, or similar memento 7.26 recognizing individual servicesin a field of specialty or to a7.27charitable cause; 7.28 (5) a trinket or memento of insignificant value; 7.29 (6) informational material ofunexceptionalinsignificant 7.30 value or that will assist the official in the performance of 7.31 official duties;or7.32 (7) food or a beverage given at areception, meal, or7.33 meeting away from therecipient's place of workoffices of the 7.34 governmental entity in which the recipient official holds office 7.35 by an organization before whom the recipient appears to make a 7.36 speech or answer questions as part of a program., even if the 8.1 meeting or program would have taken place without the attendance 8.2 of a particular speaker or participant in a group presentation 8.3 or session and reasonable expenses for travel within Minnesota 8.4 and lodging for no more than one night actually incurred and 8.5 necessary to participate in the program; or 8.6 (8) a gift of no more than $100 in value given at a 8.7 significant family event that does not take place on an annual 8.8 basis, such as a wedding or graduation, by an individual with 8.9 whom there has been a history of gift exchanges and who 8.10 personally paid for the gift without seeking business 8.11 reimbursement or a tax deduction and did not give the same or 8.12 similar gifts to anyone who was not attending the significant 8.13 family event. 8.14 (b) The prohibitions in this section do not apply if the 8.15 gift is given: 8.16 (1) because of the recipient's membership in a group, a 8.17 majority of whose members are not officials, and an equivalent 8.18 gift is given or offered to the other members of the group;or8.19 (2) by a national or multistate organization of 8.20 governmental organizations or public officials, if a majority of 8.21 the dues to the organization are paid from public funds or if 8.22 the organization is classified by the United States Internal 8.23 Revenue Service as a section 501(c)(3) nonprofit educational 8.24 association or institution, to a participant in a conference, 8.25 seminar, meeting, or trip sponsored by that organization, if an 8.26 equivalent gift is given or offered to all other participants, 8.27 even if the gift to the official was made possible by a gift to 8.28 the organization by a lobbyist or principal; 8.29 (3) to an official attending the national convention of a 8.30 major political party or the inauguration of the president of 8.31 the United States; 8.32 (4) by a lobbyist or principal who is a member of the 8.33 family of the recipient, unless the gift is given on behalf of 8.34 someone who is not a member of that family.; or 8.35 (5) to an official who acts only as the agent for the giver 8.36 in making a gift to a foreign dignitary. 9.1 (c) The prohibitions in this section do not apply to an 9.2 employer that makes a gift or provides a meal in the normal 9.3 course of employment to an official who is an employee to the 9.4 extent that other employees are entitled to the same benefits. 9.5 Subd. 4. [RETURN OF GIFT.] An official who accepts a gift 9.6 in a good faith belief that it is lawful and returns it or gives 9.7 consideration of equal or greater value for it promptly upon 9.8 learning that it was not lawful is not subject to a penalty for 9.9 violating this section. 9.10 Sec. 11. Minnesota Statutes 1998, section 10A.08, is 9.11 amended to read: 9.12 10A.08 [REPRESENTATION DISCLOSURE.] 9.13 Any public official who represents a client for a fee 9.14 before any individual, board, commission or agency that has rule 9.15 making authority in a hearing conducted under chapter 14, shall 9.16 disclose the official's participation in the action to the board 9.17 within 14 days after the appearance. The board shall notify by 9.18 certified mailor personal serviceany public official who fails 9.19 to disclose the participation within 14 days after the 9.20 appearance. If the public official fails to disclose the 9.21 participation withinseventen daysofafter this notice was 9.22 mailed, the board may impose a late filing fee of $5 per day, 9.23 not to exceed $100, commencing on theeighth11th day after 9.24receivingthe notice was mailed. 9.25 Sec. 12. Minnesota Statutes 1998, section 10A.09, 9.26 subdivision 5, is amended to read: 9.27 Subd. 5. [FORM.] A statement of economic interest required 9.28 by this section shall be on a form prescribed by the board. The 9.29 individual filing shall provide on a unified statement, with no 9.30 requirement that ownership of assets or interests be assigned to 9.31 particular family members, the following information covering 9.32 the individual and the individual's spouse and dependents: 9.33 (a) Name, address, occupation and principal place of 9.34 business; 9.35 (b) The name of each associated business and the nature of 9.36 that association; 10.1 (c) A listing of all real property within the state, 10.2 excluding homestead property, in which the individual, spouse, 10.3 or dependent holds: (i) a fee simple interest, a mortgage, a 10.4 contract for deed as buyer or seller, or an option to buy, 10.5 whether direct or indirect, and which interest is valued in 10.6 excess of $2,500; or (ii) an option to buy, which property has a 10.7 fair market value of $50,000 or more; 10.8 (d) A listing of all real property within the state in 10.9 which a partnership of which the individual, spouse, or 10.10 dependent is a member holds: (i) a fee simple interest, a 10.11 mortgage, a contract for deed as buyer or seller, or an option 10.12 to buy, whether direct or indirect, if theindividual'sshare 10.13 held by the individual, spouse, or dependent of the partnership 10.14 interest is valued in excess of $2,500 or (ii) an option to buy, 10.15 which property has a fair market value of $50,000 or more. Any 10.16 listing under clause (c) or (d) shall indicate the street 10.17 address and the municipality or the section, township, range and 10.18 approximate acreage, whichever applies, and the county wherein 10.19 the property is located; and 10.20 (e) A listing of any investments, ownership, or interests 10.21 in property connected with pari-mutuel horse racing in the 10.22 United States and Canada, including a race horse, in which the 10.23 individual directly or indirectly holds a partial or full 10.24 interest or an immediate family member holds a partial or full 10.25 interest. 10.26 Sec. 13. Minnesota Statutes 1998, section 10A.09, 10.27 subdivision 7, is amended to read: 10.28 Subd. 7. [LATE FILING.] The board shall notify by 10.29 certified mailor personal serviceany individual who fails 10.30 within the prescribed time to file a statement of economic 10.31 interest required by this section. If an individual fails to 10.32 file a statement withinseventen days afterreceiving thisthe 10.33 notice was mailed, the board may impose a late filing fee of $5 10.34 per day, not to exceed $100, commencing on theeighth11th day 10.35 afterreceivingthe notice was mailed.The board shall further10.36notify by certified mail or personal service any individual who11.1fails to file a statement within 21 days after receiving a first11.2notice that the individual may be subject to a criminal penalty11.3for failure to file a statement. An individual who fails to11.4file a statement within seven days after a second notice is11.5guilty of a misdemeanor.11.6 Sec. 14. Minnesota Statutes 1998, section 10A.14, 11.7 subdivision 4, is amended to read: 11.8 Subd. 4. [NOTICE OF FAILURE TO FILE; PENALTY.] The board 11.9 shall notify by certified mailor personal serviceany 11.10 individual who fails to file a statement required by this 11.11 section. If an individual fails to file a statement within 11.12seventen days afterreceiving athe notice was mailed, the 11.13 board may impose a late filing fee of $5 per day, not to exceed 11.14 $100, commencing with theeighth11th day afterreceivingthe 11.15 notice was mailed.The board shall further notify by certified11.16mail or personal service any individual who fails to file a11.17statement within 21 days after receiving a first notice that11.18such individual may be subject to a criminal penalty for failure11.19to file the report. An individual who knowingly fails to file11.20the statement within seven days after receiving a second notice11.21from the board is guilty of a misdemeanor.11.22 Sec. 15. Minnesota Statutes 1998, section 10A.15, 11.23 subdivision 3, is amended to read: 11.24 Subd. 3. [DEPOSIT IN ACCOUNT.] All transfers received by 11.25 or on behalf of any candidate, political committee or political 11.26 fund shall be deposited in an account designated "Campaign Fund 11.27 of ..... (name of candidate, committee or fund)." All transfers 11.28 shall be depositedpromptly uponwithin 30 days after receipt 11.29and, except for transfers received during the last three days of11.30any reporting period as described in section 10A.20, shall be11.31deposited during the reporting period in which they were11.32received. Any transfer received during the last three days of a11.33reporting period shall be deposited within 72 hours of receipt11.34 and shall be reported as received during the reporting period 11.35 whether or not deposited within that period. Any deposited 11.36 transfer may be returned to the contributor within 60 days of 12.1 deposit. A transfer deposited and not returned within 60 days 12.2 of that deposit shall be deemed for the purposes of this 12.3 chapter, to be accepted by the candidate, political committee or 12.4 political fund. 12.5 Sec. 16. Minnesota Statutes 1998, section 10A.15, 12.6 subdivision 5, is amended to read: 12.7 Subd. 5. [LOBBYIST, POLITICAL COMMITTEE, OR POLITICAL FUND 12.8 REGISTRATION NUMBER ON CHECKS.] Acontribution made to a12.9candidate by alobbyist, political committee, or political fund 12.10 that makes a contribution to a candidate or political committee 12.11 must show on the contribution the name of the lobbyist, 12.12 political committee, or political fund and the number under 12.13 which it is registered with the board. A candidate or political 12.14 committee may rely upon the presence or absence of a 12.15 registration number in determining whether the contribution is 12.16 from a lobbyist and is not subject to a civil penalty for the 12.17 failure of a contributor to comply with this subdivision. The 12.18 contributor is subject to a civil penalty up to $300 imposed by 12.19 the board. 12.20 Sec. 17. Minnesota Statutes 1998, section 10A.15, is 12.21 amended by adding a subdivision to read: 12.22 Subd. 6. [CONTRIBUTION FROM A JOINT ACCOUNT.] Unless 12.23 otherwise specified by one of the owners, a contribution given 12.24 by a check drawn on a joint account is presumed to be a 12.25 contribution by the owners of the joint account in equal shares 12.26 if the total contribution per person does not exceed $100. 12.27 Sec. 18. Minnesota Statutes 1998, section 10A.19, is 12.28 amended by adding a subdivision to read: 12.29 Subd. 3. [PROHIBITED EXPENDITURES.] A candidate's 12.30 principal campaign committee may not make an independent 12.31 expenditure on behalf of another principal campaign committee. 12.32 Sec. 19. [10A.195] [INAUGURAL, LEGAL, DEFENSE, AND OTHER 12.33 COMMITTEES.] 12.34 The treasurer of every inaugural committee, legal fund, 12.35 transition office, defense fund, or similar committee or fund 12.36 that specifically benefits an incumbent public official or newly 13.1 elected individual that is created and funded by supporters of 13.2 the public official or newly elected individual must register in 13.3 the same manner as a political committee and must disclose its 13.4 contributions and expenditures in the same manner and at the 13.5 same times as reports are required of political committees under 13.6 section 10A.20. 13.7 Sec. 20. Minnesota Statutes 1998, section 10A.20, 13.8 subdivision 3, is amended to read: 13.9 Subd. 3. [CONTENTS OF REPORT.] Each report under this 13.10 section shall disclose: 13.11 (a) The amount of liquid assets on hand at the beginning of 13.12 the reporting period; 13.13 (b) The name,and addressand employer, or occupation if13.14self-employed,of each individual, and the name and registration 13.15 number with the board of each lobbyist, political committee, or 13.16 political fund who within the year has made one or more 13.17 transfers or donations in kind to the political committee or 13.18 political fund, including the purchase of tickets for all fund 13.19 raising efforts, which in aggregate exceed $100 for legislative 13.20 or statewide candidates or ballot questions, together with the 13.21 amount and date of each transfer or donation in kind, and the 13.22 aggregate amount of transfers and donations in kind within the 13.23 year from each source so disclosed. The report must also 13.24 contain the employer or occupation, if self-employed, of each 13.25 listed source who has donated or transferred in aggregate more 13.26 than $250. A donation in kind shall be disclosed at its fair 13.27 market value. An approved expenditure is listed as a donation 13.28 in kind. A donation in kind is considered consumed in the 13.29 reporting period in which it is received. The names of 13.30 contributors shall be listed in alphabetical order; 13.31 (c) The sum of contributions to the political committee or 13.32 political fund during the reporting period; 13.33 (d) Each loan made or received by the political committee 13.34 or political fund within the year in aggregate in excess of 13.35 $100, continuously reported until repaid or forgiven, together 13.36 with the name,and address, occupation and the principal place14.1of business, if any,of the lender and any endorser and the date 14.2 and amount of the loan. The report must also contain the 14.3 employer or occupation, if self-employed, of each lender or 14.4 endorser of loans within the year in aggregate in excess of 14.5 $250. If any loan made to the principal campaign committee of a 14.6 candidate is forgiven at any time or repaid by any entity other 14.7 than that principal campaign committee, it shall be reported as 14.8 a contribution for the year in which the loan was made; 14.9 (e) Each receipt in excess of $100 not otherwise listed 14.10 under clauses (b) to (d); 14.11 (f) The sum of all receipts of the political committee or 14.12 political fund during the reporting period; 14.13 (g) The name and address of each individual or association 14.14 to whom aggregate expenditures, including approved expenditures, 14.15 have been made by or on behalf of the political committee or 14.16 political fund within the year in excess of $100, together with 14.17 the amount, date and purpose of each expenditure and the name 14.18 and address of, and office sought by, each candidate on whose 14.19 behalf the expenditure was made, identification of the ballot 14.20 question which the expenditure is intended to promote or defeat, 14.21 and in the case of independent expenditures made in support of 14.22 or opposition to a candidate, the name, address and office 14.23 sought for each such candidate; 14.24 (h) The sum of all expenditures made by or on behalf of the 14.25 political committee or political fund during the reporting 14.26 period; 14.27 (i) The amount and nature of any advance of credit incurred 14.28 by the political committee or political fund, continuously 14.29 reported until paid or forgiven. If any advance of credit 14.30 incurred by the principal campaign committee of a candidate is 14.31 forgiven at any time by the creditor or paid by any entity other 14.32 than that principal campaign committee, it shall be reported as 14.33 a donation in kind for the year in which the advance of credit 14.34 was incurred; 14.35 (j) The name and address of each political committee, 14.36 political fund, or principal campaign committee to which 15.1 aggregate transfers in excess of $100 have been made within the 15.2 year, together with the amount and date of each transfer; 15.3 (k) The sum of all transfers made by the political 15.4 committee, political fund, or principal campaign committee 15.5 during the reporting period; 15.6 (l) Except for contributions to a candidate or committee 15.7 for a candidate for office in a municipality as defined in 15.8 section 471.345, subdivision 1, the name and address of each 15.9 individual or association to whom aggregate noncampaign 15.10 disbursements in excess of $100 have been made within the year 15.11 by or on behalf of a principal campaign committee, political 15.12 committee, or political fund, together with the amount, date, 15.13 and purpose of each noncampaign disbursement; 15.14 (m) The sum of all noncampaign disbursements made within 15.15 the year by or on behalf of a principal campaign committee, 15.16 political committee, or political fund; 15.17 (n) The name and address of a nonprofit corporation that 15.18 provides administrative assistance to a political committee or 15.19 political fund as authorized by section 211B.15, subdivision 17, 15.20 together with the type of administrative assistance provided and 15.21 the aggregate fair market value of each type of assistance 15.22 provided to the political committee or political fund during the 15.23 reporting period; and 15.24 (o) A report filed under subdivision 2, clause (b), by a 15.25 political committee or political fund that is subject to 15.26 subdivision 14, must contain the information required by 15.27 subdivision 14, if the political committee or political fund has 15.28 solicited and caused others to make aggregate contributions 15.29 greater than $5,000 between January 1 of the general election 15.30 year and the end of the reporting period. This disclosure 15.31 requirement is in addition to the report required by subdivision 15.32 14. 15.33 Sec. 21. Minnesota Statutes 1998, section 10A.20, 15.34 subdivision 5, is amended to read: 15.35 Subd. 5. [PREELECTION REPORTS.] In any statewide election 15.36 any loan, contribution, or contributions from any one source 16.1 totaling $2,000 or more, or in any legislative election totaling 16.2 more than $400, received between the last day covered in the 16.3 last report prior to an election and the election shall be 16.4 reported to the board in one of the following ways: 16.5 (1) in person within 48 hours after its receipt; 16.6 (2) by telegram or mailgram within 48 hours after its 16.7 receipt;or16.8 (3) bycertifiedfirst class mail sent within 48 hours 16.9 after its receipt; 16.10 (4) by facsimile transmission received by the board within 16.11 48 hours after the contribution was received; or 16.12 (5) by any other method of electronic transmission approved 16.13 by the board and received by the board within 48 hours after the 16.14 contribution was received. 16.15 These loans and contributions must also be reported in the 16.16 next required report. 16.17 The 48-hour notice requirement does not apply with respect 16.18 to a primary if the statewide or legislative candidate is 16.19 unopposed in that primary. 16.20 Sec. 22. Minnesota Statutes 1998, section 10A.20, 16.21 subdivision 12, is amended to read: 16.22 Subd. 12. [FAILURE TO FILE; PENALTY.] The board shall 16.23 notify by certified mailor personal serviceany individual who 16.24 fails to file a statement required by this section. If an 16.25 individual fails to file a statement due January 31 withinseven16.26 ten days afterreceivinga notice was mailed, the board may 16.27 impose a late filing fee of $5 per day, not to exceed $100, 16.28 commencing on theeighth11th day afterreceivingthe notice 16.29 was mailed. If an individual fails to file a statement due 16.30 before any primary or election within three days of the date 16.31 due, regardless of whether the individual has received any 16.32 notice, the board may impose a late filing fee of $50 per day, 16.33 not to exceed $500, commencing on the fourth day after the date 16.34 the statement was due.The board shall further notify by16.35certified mail or personal service any individual who fails to16.36file any statement within 14 days after receiving a first notice17.1from the board that the individual may be subject to a criminal17.2penalty for failure to file a statement. An individual who17.3knowingly fails to file the statement within seven days after17.4receiving a second notice from the board is guilty of a17.5misdemeanor.The late filing fee may be paid out of the assets 17.6 of the political committee or fund. 17.7 Sec. 23. Minnesota Statutes 1998, section 10A.20, is 17.8 amended by adding a subdivision to read: 17.9 Subd. 15. [EQUITABLE RELIEF.] A candidate whose opponent 17.10 does not timely file the report due ten days before the general 17.11 election may petition the district court for immediate equitable 17.12 relief to enforce the filing requirement. A prevailing party 17.13 under this subdivision may be awarded attorney fees and costs by 17.14 the court. 17.15 Sec. 24. Minnesota Statutes 1998, section 10A.23, is 17.16 amended to read: 17.17 10A.23 [CHANGES AND CORRECTIONS.] 17.18 Subdivision 1. [REPORT.] Any material changes in 17.19 information previously submitted and any corrections to a report 17.20 or statement shall be reported in writing to the board within 17.21 ten days following the date of the event prompting the change or 17.22 the date upon which the person filing became aware of the 17.23 inaccuracy. The change or correction shall identify the form 17.24 and the paragraph containing the information to be changed or 17.25 corrected. If the board determines that a report or statement 17.26 is inaccurate or incomplete, the board shall notify by certified 17.27 mail the person who filed the report or statement of the need to 17.28 correct it. 17.29 Subd. 2. [PENALTY.] If the person fails to file a 17.30 corrected report or statement within 20 days after: (1) the 17.31 event prompting the change; (2) the date upon which the person 17.32 filing became aware of the inaccuracy; or (3) the date the 17.33 notice was mailed, the board may impose a late filing fee at the 17.34 rate of $5 a day, not to exceed $100, commencing with the 11th 17.35 day. 17.36 Any person who willfully fails to report a material change 18.1 or correction is guilty of a gross misdemeanor. 18.2 Sec. 25. Minnesota Statutes 1998, section 10A.25, 18.3 subdivision 2, is amended to read: 18.4 Subd. 2. [MAXIMUM EXPENDITURES.] (a)In a year in which an18.5election is held for an office sought by a candidate,No 18.6 expenditures shall be made by the principal campaign committee 18.7 ofthata candidate, nor any approved expenditures made on 18.8 behalf of that candidate which expenditures and approved 18.9 expenditures result in an election cycle in an aggregate amount 18.10 in excess ofthe following120 percent of the amount in clause 18.11 (5) for a state representative and in clause (4) for a state 18.12 senator in an election cycle in which the state senator will 18.13 serve a two-year term; and 160 percent of the amount in clause 18.14 (1), (2), or (3) for each of the other offices and in clause (4) 18.15 for a state senator in an election cycle in which the state 18.16 senator will serve a four-year term: 18.17 (1) for governor and lieutenant governor, running together, 18.18 $1,626,691; 18.19 (2) for attorney general, $271,116; 18.20 (3) for secretary of state, state treasurer,and state 18.21 auditor, separately, $135,559; 18.22 (4) for state senator, $40,669; 18.23 (5) for state representative, $20,335. 18.24 (b) If a special election cycle occurs during a general 18.25 election cycle, expenditures by or on behalf of a candidate in 18.26 the special election do not count as expenditures by or on 18.27 behalf of the candidate in the general election. 18.28 (c) The expenditure limits in this subdivision for an 18.29 office are increased by ten percent for a candidate who is 18.30 running for that office for the first time and who has not run 18.31 previously for any other office whose territory now includes a 18.32 population that is more than one-third of the population in the 18.33 territory of the new office. 18.34 Sec. 26. Minnesota Statutes 1998, section 10A.25, 18.35 subdivision 2a, is amended to read: 18.36 Subd. 2a. [AGGREGATED EXPENDITURES.] If a candidate makes 19.1 expenditures from more than one principal campaign committee for 19.2 nomination or election to statewide office in the same election 19.3 year, the amount of expenditures from all of the candidate's 19.4 principal campaign committees for statewide office for that 19.5 electionyearcycle must be aggregated for purposes of the 19.6 application of the limits on campaign expenditures under 19.7 subdivision 2, clauses (a) to (c). 19.8 Sec. 27. Minnesota Statutes 1998, section 10A.25, 19.9 subdivision 10, is amended to read: 19.10 Subd. 10. [EFFECT OF OPPONENT'S CONDUCT.] (a) After August 19.11 1 in an election year for the office, a candidate who has agreed 19.12 to be bound by the expenditure limits imposed by this section as 19.13 a condition of receiving a public subsidy for the candidate's 19.14 campaignismay choose to be released from the expenditure 19.15 limits butremainsremain eligible to receive a public subsidy 19.16 if the candidate has an opponent whodoeshas notagreeagreed 19.17 to be bound by the limits andreceiveshas received 19.18 contributions ormakesmade orbecomesbecome obligated to make 19.19 expenditures during that election cycle in excess of the 19.20 following limits: 19.21 (1) up toten15 days before the primary election, receipts 19.22 or expenditures equal to 20 percent of the expenditure limit for 19.23 that office as set forth in subdivision 2; or 19.24 (2) afterten15 days before the primary election, 19.25 cumulative receipts or expenditures during that election cycle 19.26 equal to 50 percent of the expenditure limit for that office as 19.27 set forth in subdivision 2. 19.28 Before the primary election, a candidate's "opponents" are 19.29 only those who will appear on the ballot of the same party in 19.30 the primary election. 19.31 (b) A candidate who has not agreed to be bound by 19.32 expenditure limits, or the candidate's principal campaign 19.33 committee, shall file written notice with the board and provide 19.34 written notice to any opponent of the candidate for the same 19.35 office within 24 hours of exceeding the limits in paragraph (a),19.36clause (2). The notice must state only that the candidate or 20.1 candidate's principal campaign committee has received 20.2 contributions or made or become obligated to make campaign 20.3 expenditures in excess of the limits in paragraph (a), clause20.4(2). 20.5 (c) Upon receipt of the noticethe, a candidate who has 20.6 agreed to be bound by the limitsismay file with the board a 20.7 notice that the candidate chooses to be no longer bound by the 20.8 expenditure limits. A notice of a candidate's choice not to be 20.9 bound by the expenditure limits that is based on the conduct of 20.10 an opponent in the state primary election may not be filed more 20.11 than one day after the state canvassing board has declared the 20.12 results of the state primary. 20.13 (d) A candidate who has agreed to be bound by the 20.14 expenditure limits imposed by this section and whose opponent in 20.15 the general election has chosen, as provided in paragraph (c), 20.16 not to be bound by the expenditure limits because of the conduct 20.17 of an opponent in the primary election is no longer bound by the 20.18 limits but remains eligible to receive a public subsidy. 20.19 (e) If a candidate chooses under this subdivision not to be 20.20 bound by the expenditure limits, the candidate is also released 20.21 from any limits on the amount of personal contributions to the 20.22 candidate's own campaign. 20.23 Sec. 28. Minnesota Statutes 1998, section 10A.265, is 20.24 amended to read: 20.25 10A.265 [FREEDOM TO ASSOCIATE AND COMMUNICATE.] 20.26 Nothing in this chapter shall be construed as abridging the 20.27 right of an association to communicate with its 20.28 members. Corporations, limited liability companies, and 20.29 nonprofit corporations may communicate in writing directly with 20.30 their members, employees, and shareholders in support of or in 20.31 opposition to the election of particular candidates without any 20.32 expenditure being allocated to a candidate for purposes of the 20.33 limits in section 10A.25. 20.34 Sec. 29. Minnesota Statutes 1998, section 10A.27, 20.35 subdivision 1, is amended to read: 20.36 Subdivision 1. [CONTRIBUTION LIMITS.] Except as provided 21.1 in subdivision 2, no candidate shall permit the candidate's 21.2 principal campaign committee to accept aggregate contributions 21.3 made or delivered by any individual, political committee, or 21.4 political fund in excess of the following: 21.5 (a) to candidates for governor and lieutenant governor 21.6 running together,$2,000$3,500 inan election year for the21.7office sought and $500 in other yearsan election cycle; 21.8 (b) to a candidate for attorney general,$1,000$1,600 in 21.9an election year for the office sought and $200 in other years21.10 an election cycle; 21.11 (c) to a candidate for the office of secretary of state,21.12state treasureror state auditor,$500$800 inan election year21.13for the office sought and $100 in other yearsan election cycle; 21.14 (d) to a candidate for state senator,$500 in an election21.15year for the office sought and $100 in other years$800 for a 21.16 four-year term and $600 for a two-year term; and 21.17 (e) to a candidate for state representative,$500$600 in 21.18an election year for the office sought and $100 in the other21.19yearan election cycle. 21.20 The following deliveries are not subject to the bundling 21.21 limitation in this subdivision: 21.22 (1) delivery of contributions collected by a member of the 21.23 candidate's principal campaign committee, such as a block worker 21.24 or a volunteer who hosts a fund raising event, to the 21.25 committee's treasurer; and 21.26 (2) a delivery made by an individual on behalf of the 21.27 individual's spouse. 21.28 Sec. 30. Minnesota Statutes 1998, section 10A.27, 21.29 subdivision 9, is amended to read: 21.30 Subd. 9. [TRANSFERS AMONG COMMITTEES; CONTRIBUTIONS FROM 21.31 CERTAIN CANDIDATES.] (a) A candidate or the treasurer of a 21.32 candidate's principal campaign committee shall not accept a 21.33 transfer or contribution from another candidate's principal 21.34 campaign committee or from any other committee bearing the 21.35 contributing candidate's name or title or otherwise authorized 21.36 by the contributing candidate, unless the contributing 22.1 candidate's principal campaign committee is being dissolved. A 22.2 candidate's principal campaign committee shall not make a 22.3 transfer or contribution to another candidate's principal 22.4 campaign committee, except when the contributing committee is 22.5 being dissolved. The contributing committee must provide with 22.6 the contribution a written statement of the committee's intent 22.7 to dissolve and terminate its registration by the end of that 22.8 calendar year. If the committee fails to dissolve and terminate 22.9 its registration by that time, a civil penalty equal to the size 22.10 of the contribution subject to the amount remaining in the 22.11 committee's treasury may be levied against the contributing 22.12 committee. 22.13 (b) A candidate's principal campaign committee shall not 22.14 accept a transfer or contribution from, or make a transfer or 22.15 contribution to, a committee associated with a person who seeks 22.16 nomination or election to the office of President, Senator, or 22.17 Representative in Congress of the United States. 22.18 (c) A candidate or the treasurer of a candidate's principal 22.19 campaign committee shall not accept a contribution from a 22.20 candidate for political subdivision office, unless the 22.21 contribution is from the personal funds of the candidate for 22.22 political subdivision office. A candidate or the treasurer of a 22.23 candidate's principal campaign committee shall not make a 22.24 contribution from the principal campaign committee to a 22.25 candidate for political subdivision office. 22.26 Sec. 31. Minnesota Statutes 1998, section 10A.27, 22.27 subdivision 10, is amended to read: 22.28 Subd. 10. [PROHIBITED CONTRIBUTIONS.] A candidate who 22.29 accepts a public subsidy may not contribute to the candidate's 22.30 own campaign more than ten times the candidate's election year 22.31 contribution limit under subdivision 1, except that a candidate 22.32 who terminates the candidate's principal campaign committee may 22.33 contribute to the committee an amount necessary to pay all or 22.34 part of the debts of the committee. 22.35 Sec. 32. Minnesota Statutes 1998, section 10A.275, 22.36 subdivision 1, is amended to read: 23.1 Subdivision 1. [EXCEPTIONS.] Notwithstanding any other 23.2 provisions of this chapter, the following expenditures by a 23.3 state political party, a party unit, or two or more party units 23.4 acting together, with at least one party unit being either: the 23.5 state party organization or the party organization within a 23.6 congressional district, county, or legislative district, shall 23.7 not be considered contributions to or expenditures on behalf of 23.8 any candidate for the purposes of section 10A.25 or 10A.27, and 23.9 shall not be allocated to any candidates pursuant to section 23.10 10A.22, subdivision 5: 23.11 (a) expenditures on behalf of candidates of that party 23.12 generally without referring to any of them specifically in any 23.13 advertisement published, posted or broadcast; 23.14 (b) expenditures for the preparation, display, mailing or 23.15 other distribution of an official party sample ballot listing 23.16 the names of three or more individuals whose names are to appear 23.17 on the ballot; 23.18 (c) expenditures for any telephone conversation including 23.19 the names of three or more individuals whose names are to appear 23.20 on the ballot; 23.21 (d) expendituresfor any political party fundraising effort23.22on behalfin the name of three or more candidates whose names 23.23 are to appear on the ballot if each of the candidates receives a 23.24 proportionately equal portion of the expenditure; or 23.25 (e) expenditures for party committee staff member services 23.26 or consultants that benefit three or more candidates. 23.27 For purposes of clause (b), "sample ballot" means an 23.28 advertisement or brochure containing the names of the candidates 23.29 and offices sought, the words "sample ballot," the 23.30 identification of the political party, and required disclaimers 23.31 and, optionally, photographs of the candidates, address 23.32 information necessary for distributing the ballot, and voter 23.33 information such as voter registration or precinct location 23.34 information. Any additional information included with the 23.35 sample ballot must be allocated among the candidates as campaign 23.36 expenditures. 24.1 Sec. 33. Minnesota Statutes 1998, section 10A.29, is 24.2 amended to read: 24.3 10A.29 [CIRCUMVENTION PROHIBITED.] 24.4 Any attempt by an individual or association to circumvent 24.5 the provisions of this chapter by redirecting funds or giving a 24.6 gift through, or contributing funds or giving a gift on behalf 24.7 of, another individual or association is a gross misdemeanor. 24.8 Sec. 34. Minnesota Statutes 1998, section 10A.31, 24.9 subdivision 7, is amended to read: 24.10 Subd. 7. [DISTRIBUTION OF GENERAL ACCOUNT.] (a) Within two 24.11 weeks after certification by the state canvassing board of the 24.12 results of the general election, the board shall distribute the 24.13 available funds in the general account, as certified by the 24.14 commissioner of revenue on November 1 and according to 24.15 allocations set forth in subdivision 5, in equal amounts to all 24.16 candidates for each statewide office who received at least five 24.17 percent of the votes cast in the general election for that 24.18 office, and to all candidates for legislative office who 24.19 received at least ten percent of the votes cast in the general 24.20 election for the specific office for which they were candidates, 24.21 provided that the public subsidy under this subdivision may not 24.22 be paid in an amount that would cause the sum of the public 24.23 subsidy paid from the party account plus the public subsidy paid 24.24 from the general account and the public subsidy paid to match 24.25 independent expenditures to exceed 50 percent of the expenditure 24.26 limit for the candidate. If a candidate is entitled to receive 24.27 an opponent's share of the general account public subsidy under 24.28 section 10A.25, subdivision 10, the opponent's share must be 24.29 excluded in calculating the 50 percent limit. Money from the 24.30 general account not paid to a candidate because of the 50 24.31 percent limit must be distributed equally among all other 24.32 qualifying candidates for the same office until all have reached 24.33 the 50 percent limit or the balance in the general account is 24.34 exhausted. The board shall not use the information contained in 24.35 the report of the principal campaign committee of any candidate 24.36 due ten days before the general election for the purpose of 25.1 reducing the amount due that candidate from the general account. 25.2 (b) If a candidate has not yet filed a campaign finance 25.3 report required by section 10A.20, subdivision 2, or the 25.4 candidate owes money to the board, the board shall pay that 25.5 candidate's public subsidy into an escrow account until the 25.6 report has been filed or the debt has been paid, whichever 25.7 applies. If the report has not been filed or the debt paid to 25.8 the board by the end of the fiscal year, the subsidy shall be 25.9 applied to the debts owed by the candidate to the board and any 25.10 remaining amount shall be returned to the general fund in the 25.11 state treasury. 25.12 Sec. 35. Minnesota Statutes 1998, section 10A.31, 25.13 subdivision 10, is amended to read: 25.14 Subd. 10. [DISTRIBUTION.] In the event that on the date of 25.15 either certification by the commissioner of revenue as provided 25.16 in subdivisions 6 and 7, less than 98 percent of the tax returns 25.17 have been processed, the commissioner of revenue shall certify 25.18 to the board by December 1 the amount accumulated in each 25.19 account since the previous certification. By December 15, the 25.20 board shall distribute to each candidate according to the 25.21 allocations as provided in subdivision 5 the amounts to which 25.22 the candidates are entitled in the form of checks made "payable 25.23 to the campaign fund of ......(name of candidate)......." A 25.24 check may include as an additional payee a financial institution 25.25 named by the candidate in a notice filed with the board at least 25.26 ten days before the payment was due to be made. Any money 25.27 accumulated after the final certification shall be maintained in 25.28 the respective accounts for distribution in the next general 25.29 election year. 25.30 Sec. 36. Minnesota Statutes 1998, section 10A.315, is 25.31 amended to read: 25.32 10A.315 [SPECIAL ELECTION SUBSIDY.] 25.33 (a) Each eligible candidate for a legislative office in a 25.34 special election must be paid a public subsidy equal to the sum 25.35 of: 25.36 (1) the party account money at the last general election 26.1 for the candidate's party for the office the candidate is 26.2 seeking; and 26.3 (2) the general account money paid to candidates for the 26.4 same office at the last general election. 26.5 (b) If the filing period for the special election coincides 26.6 with the filing period for the general election, the candidate 26.7 must meet the matching requirements of section 10A.323 and the 26.8 special election subsidy must be distributed in the same manner 26.9 as money is distributed to legislative candidates in a general 26.10 election. 26.11 (c) If the filing period for the special election does not 26.12 coincide with the filing period for the general election, the 26.13 procedures in this paragraph apply. A candidate who wishes to 26.14 receive this public subsidy must submit a signed agreement under 26.15 section 10A.322 to the board not later than the day after the 26.16 candidate files the affidavit of candidacy or nominating 26.17 petition for the office. The candidate must meet the matching 26.18 requirements of section 10A.323, except that the candidate may 26.19 count contributions received during the 45 days immediately 26.20 preceding the special election, other than contributions the 26.21 candidate has previously included on an affidavit of match for 26.22 another election. The special election subsidy must be 26.23 distributed in the same manner as money in the party and general 26.24 accounts is distributed to legislative candidates in a general 26.25 election. 26.26 (d) The amount necessary to make the payments required by 26.27 this subdivision is appropriated from the general fund to the 26.28state treasurerboard. 26.29 Sec. 37. Minnesota Statutes 1998, section 10A.322, 26.30 subdivision 1, is amended to read: 26.31 Subdivision 1. [AGREEMENT BY CANDIDATE.] (a) As a 26.32 condition of receiving a public subsidy, a candidate shall sign 26.33 and file with the board a written agreement in which the 26.34 candidate agrees that the candidate will comply with sections 26.35 10A.25 and 10A.324. 26.36 (b) Before the first day of filing for office, the board 27.1 shall forward agreement forms to all filing officers. The board 27.2 shall also provide agreement forms to candidates on request at 27.3 any time. The candidate may sign an agreement and submit it to 27.4 the filing officer on the day of filing an affidavit of 27.5 candidacy or petition to appear on the ballot, in which case the 27.6 filing officer shall without delay forward signed agreements to 27.7 the board. Alternatively, the candidate may submit the 27.8 agreement directly to the board at any time beforeSeptember27.9 August 1 preceding the general election. An agreement may not 27.10 be filed after that date. An agreement once filed may not be 27.11 rescinded. 27.12 (c) The board shall forward a copy of any agreement signed 27.13 under this subdivision to the commissioner of revenue. 27.14 (d) Notwithstanding any provisions of this section, when a 27.15 vacancy occurs that will be filled by means of a special 27.16 election and the filing period does not coincide with the filing 27.17 period for the general election, a candidate may sign and submit 27.18 a spending limit agreement at any time before the deadline for 27.19 submission of a signed agreement under section 10A.315. 27.20 (e) A candidate who fills a vacancy in nomination that 27.21 occurs after the deadline in paragraph (b) may file a spending 27.22 limit agreement no later than the day after the candidate fills 27.23 the vacancy. 27.24 Sec. 38. Minnesota Statutes 1998, section 10A.322, 27.25 subdivision 4, is amended to read: 27.26 Subd. 4. [REFUND RECEIPT FORMS; PENALTY.] The board shall 27.27 make available to a political party as defined in section 27.28 290.06, subdivision 23, on request and to any candidate for whom 27.29 an agreement under this section is effective, a supply of 27.30 official refund receipt forms that state in boldface type that 27.31 (1) a contributor who is given a receipt form is eligible to 27.32 claim a refund as provided in section 290.06, subdivision 23, 27.33 and (2) if the contribution is to a candidate, that the 27.34 candidate has signed an agreement to limit campaign expenditures 27.35 as provided in this section. The forms must provide duplicate 27.36 copies of the receipt to be attached to the contributor's 28.1 claim. A candidate who does not sign an agreement under this 28.2 section and who willfully issues an official refund receipt form 28.3 or a facsimile of one to any of the candidate's contributors is 28.4 guilty of a misdemeanor. A principal campaign committee or 28.5 party unit shall return to the board with its termination report 28.6 or destroy any official receipt forms that have not been issued. 28.7 Sec. 39. Minnesota Statutes 1998, section 10A.324, 28.8 subdivision 1, is amended to read: 28.9 Subdivision 1. [WHEN RETURN REQUIRED.] A candidate shall 28.10 return all or a portion of the public subsidy received from the 28.11 state elections campaign fund or the public matching subsidy 28.12 received under section 10A.315, under the circumstances in this 28.13 section or section 10A.25, subdivision 11. 28.14 (a) To the extent that the amount of public subsidy 28.15 received by the candidate exceeds the expenditure limits for the 28.16 office held or sought, as provided in section 10A.25 and as 28.17 adjusted by section 10A.255, the treasurer of the candidate's 28.18 principal campaign committee shall return the excess to the 28.19 board. 28.20(b) To the extent that the amount of public subsidy28.21received exceeds the aggregate of: (1) actual expenditures made28.22by the principal campaign committee of the candidate; and (2)28.23approved expenditures made on behalf of the candidate, the28.24treasurer of the candidate's principal campaign committee shall28.25return an amount equal to the difference to the board.28.26 (b) If the board determines that a candidate has filed an 28.27 affidavit of matching contributions under section 10A.323 that 28.28 is not supported by the campaign finance reports filed by the 28.29 candidate under section 10A.20, that the amount in the affidavit 28.30 exceeds the amount reported in the campaign finance report, and 28.31 that the amount reported in the campaign finance report is less 28.32 than the amount required under section 10A.323 to be eligible 28.33 for a public subsidy under section 10A.31, the board shall 28.34 notify the treasurer of the candidate's principal campaign 28.35 committee, withhold any public subsidy not yet paid to the 28.36 candidate, and demand return of any public subsidy paid to the 29.1 candidate for that election cycle. The treasurer shall return 29.2 the entire public subsidy to the board. 29.3 Sec. 40. Minnesota Statutes 1998, section 10A.34, is 29.4 amended to read: 29.5 10A.34 [REMEDIES.] 29.6 Subdivision 1. [PERSONAL LIABILITY.] A person charged with 29.7 a duty undersections 10A.02 to 10A.34 shall bethis chapter is 29.8 personally liable for the penalty for failing to discharge it, 29.9 except that the treasurer or other officer of a political 29.10 committee is not personally responsible for violations of this 29.11 chapter and the candidate is personally responsible for 29.12 violations by the treasurer and other officers of the political 29.13 committee. 29.14 Subd. 1a. [LATE FILING FEES.] The board may bring an 29.15 action in the district court in Ramsey county to recover any 29.16 late filing fee or civil penalty imposed or public subsidy paid 29.17 pursuant to any provision of this chapter. All money recovered 29.18 shall be deposited in the general fund of the state. 29.19 Subd. 2. [INJUNCTION.] The board or a county attorney may 29.20 seek an injunction in the district court to enforcethe29.21provisions of sections 10A.02 to 10A.34this chapter. 29.22 Subd. 3. [NOT A CRIME.] Unless otherwise provided, a 29.23 violation ofsections 10A.02 to 10A.34this chapter is not a 29.24 crime but is subject to a civil penalty imposed by the board in 29.25 an amount up to $300. 29.26 Subd. 4. [AWARD OF COSTS.] If the board prevails in an 29.27 action to enforce this chapter, the board may request and the 29.28 court may award to the board its costs, disbursements, 29.29 reasonable attorney fees, and witness fees. 29.30 Subd. 5. [PENALTY FOR FALSE COMPLAINTS.] A person who 29.31 knowingly makes a false or bad faith complaint or report of an 29.32 alleged violation of this chapter is subject to a civil penalty 29.33 imposed by the board of up to $300. 29.34 Sec. 41. Minnesota Statutes 1998, section 200.02, 29.35 subdivision 7, is amended to read: 29.36 Subd. 7. [MAJOR POLITICAL PARTY.] "Major political party" 30.1 means a political party that maintains a party organization in 30.2 the state, political division or precinct in question and: 30.3 (a) which has presented at least one candidate for election 30.4 toa partisanthe office of governor or senator in Congress at 30.5 the last preceding state general election, which candidate 30.6 received votes in each county in that election and received 30.7 votes from not less than five percent of the total number of 30.8 individuals who voted in that election; or 30.9 (b) whose members present to the secretary of state a 30.10 petition for a place on the state partisan primary ballot, which 30.11 petition contains signatures of a number of the party members 30.12 equal to at least five percent of the total number of 30.13 individuals who voted in the preceding state general election. 30.14 Sec. 42. Minnesota Statutes 1998, section 211A.02, 30.15 subdivision 2, is amended to read: 30.16 Subd. 2. [INFORMATION REQUIRED.] The report to be filed by 30.17 a candidate or committee must include: 30.18 (1) the name of the candidate or ballot question; 30.19 (2) the name and address of the person responsible for 30.20 filing the report; 30.21 (3) the total amount of receipts and expenditures for the 30.22 period from the last previous report to five days before the 30.23 current report is due; 30.24 (4) the purpose for each expenditure; and 30.25 (5) the name of any individual or committee that during the 30.26 year has made one or more contributions that in the aggregate 30.27 areequal to or greatermore than$500$100. 30.28 Sec. 43. Minnesota Statutes 1998, section 211B.15, 30.29 subdivision 6, is amended to read: 30.30 Subd. 6. [PENALTY FOR INDIVIDUALS.] (a) An officer, 30.31 manager, stockholder, member, agent, employee, attorney, or 30.32 other representative of a corporation acting in behalf of the 30.33 corporation who intentionally violates this section by making a 30.34 prohibited contribution, not including a contribution of money, 30.35 with a value less than $5,000 may be fined an amount not more 30.36 than four times the value of the prohibited contribution. 31.1 (b) An officer, manager, stockholder, member, agent, 31.2 employee, attorney, or other representative of a corporation 31.3 acting in behalf of the corporation who intentionally violates 31.4 this section by making a prohibited contribution with a value in 31.5 excess of $5,000 or who makes a prohibited contribution of money 31.6 may be fined not more than $20,000 or be imprisoned for not more 31.7 than five years, or both. 31.8 Sec. 44. Minnesota Statutes 1998, section 211B.15, 31.9 subdivision 7, is amended to read: 31.10 Subd. 7. [PENALTY FOR CORPORATIONS.] A corporation 31.11 convicted of intentionally violating this section by making a 31.12 prohibited contribution, not including a contribution of money, 31.13 is subject to a fine of not more than four times the value of 31.14 the prohibited contribution but not greater than$40,000$20,000. 31.15 Aconvicteddomestic corporation convicted of making a 31.16 prohibited contribution in excess of $5,000 or a prohibited 31.17 contribution of money may be dissolved as well as fined up to 31.18 $40,000. If a foreign or nonresident corporation is 31.19 convicted of making a prohibited contribution in excess of 31.20 $5,000 or a prohibited contribution of money, in addition to 31.21 being fined up to $40,000, its right to do business in this 31.22 state may be declared forfeited. 31.23 Sec. 45. Minnesota Statutes 1998, section 211B.15, 31.24 subdivision 17, is amended to read: 31.25 Subd. 17. [NONPROFIT CORPORATION POLITICAL31.26ACTIVITYADMINISTRATIVE SUPPORT.] It is not a violation of this 31.27 section for anonprofitcorporation or limited liability company 31.28 to provide administrative assistance to one political committee 31.29 or political fund that is associated with thenonprofit31.30 corporation or limited liability company and registered with the 31.31 campaign finance and public disclosure board under section 31.32 10A.14.SuchAdministrative assistancemust be limited to31.33 includes accounting, clerical or legal services, bank charges, 31.34 utilities, office space,andsupplies, and the expenses of 31.35 soliciting donations to the political committee or political 31.36 fund. The records of the political committee or political fund 32.1 may be kept on the premises of thenonprofitcorporation or 32.2 limited liability company. 32.3 The administrative assistance provided by thenonprofit32.4 corporation or limited liability company to the political 32.5 committee or political fund is limited annually to thelesser32.6 greater of $5,000 or 7-1/2 percent of the expenditures of the 32.7 political committee or political fund. 32.8 Sec. 46. Minnesota Statutes 1998, section 211B.15, is 32.9 amended by adding a subdivision to read: 32.10 Subd. 18. [PENALTY FOR FALSE COMPLAINTS.] A person who 32.11 intentionally makes a false or bad faith complaint or report of 32.12 an alleged violation of this section is liable for the costs of 32.13 defense of a party against whom the complaint is made in an 32.14 amount not to exceed $300. 32.15 Sec. 47. Minnesota Statutes 1998, section 290.06, 32.16 subdivision 23, is amended to read: 32.17 Subd. 23. [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 32.18 AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 32.19 amount of the taxpayer's contributions made in the calendar year 32.20 to candidates and to any political party. The maximum refund 32.21 for an individual must not exceed $50 and, for a married couple 32.22 filing jointly, must not exceed $100. A refund of a 32.23 contribution is allowed only if the taxpayer files a form 32.24 required by the commissioner and attaches to the form a copy of 32.25 an official refund receipt form issued by the candidate or party 32.26 and signed by the candidate, the treasurer of the candidate's 32.27 principal campaign committee, or the party chair, after the 32.28 contribution was received. The amount of the refund must be 32.29 equal to the amount recorded on the official refund receipt form 32.30 issued by the candidate or party and signed by the candidate, 32.31 the treasurer of the candidate's principal campaign committee, 32.32 or the party chair, after the contribution was received, 32.33 regardless of the cost of food, beverage, entertainment, or 32.34 facility rental associated with soliciting, raising, or 32.35 accepting the contribution. The receipt forms must be numbered, 32.36 and the data on the receipt that are not public must be made 33.1 available to the campaign finance and public disclosure board 33.2 upon its request. A claim must be filed with the commissioner 33.3 not sooner than January 1 of the calendar year in which the 33.4 contribution is made and no later than April 15 of the calendar 33.5 year following the calendar year in which the contribution is 33.6 made. A taxpayer may file only one claim per calendar year. 33.7 Amounts paid by the commissioner after June 15 of the calendar 33.8 year following the calendar year in which the contribution is 33.9 made must include interest at the rate specified in section 33.10 270.76. 33.11 (b) No refund is allowed under this subdivision for a 33.12 contribution to any candidate unless the candidate: 33.13 (1) has signed an agreement to limit campaign expenditures 33.14 as provided in section 10A.322 or 10A.43; 33.15 (2) is seeking an office for which voluntary spending 33.16 limits are specified in section 10A.25 or 10A.43; and 33.17 (3) has designated a principal campaign committee. 33.18 This subdivision does not limit the campaign expenditure of 33.19 a candidate who does not sign an agreement but accepts a 33.20 contribution for which the contributor improperly claims a 33.21 refund. 33.22 (c) For purposes of this subdivision, "political party" 33.23 means a major political party as defined in section 200.02, 33.24 subdivision 7, or a minor political party qualifying for 33.25 inclusion on the income tax or property tax refund form under 33.26 section 10A.31, subdivision 3a. 33.27 A "major or minor party" includes the aggregate of the 33.28 party organization within each house of the legislature, the 33.29 state party organization, and the party organization within 33.30 congressional districts, counties, legislative districts, 33.31 municipalities, and precincts. 33.32 "Candidate" means a congressional candidate as defined in 33.33 section 10A.41, subdivision 4, or a candidate as defined in 33.34 section 10A.01, subdivision 5, except a candidate for judicial 33.35 office. 33.36 "Contribution" means a gift of money. 34.1 (d) The commissioner shall make copies of the form 34.2 available to the public and candidates upon request. 34.3 (e) The following data collected or maintained by the 34.4 commissioner under this subdivision are private: the identities 34.5 of individuals claiming a refund, the identities of candidates 34.6 to whom those individuals have made contributions, and the 34.7 amount of each contribution. 34.8 (f) The commissioner shall report to the campaign finance 34.9 and public disclosure board by August 1 of each year a summary 34.10 showing the total number and aggregate amount of political 34.11 contribution refunds made on behalf of each candidate and each 34.12 political party. These data are public. 34.13 (g) The amount necessary to pay claims for the refund 34.14 provided in this section is appropriated from the general fund 34.15 to the commissioner of revenue. 34.16 Sec. 48. Minnesota Statutes 1998, section 471.895, is 34.17 amended to read: 34.18 471.895 [CERTAIN GIFTS BY INTERESTED PERSONS PROHIBITED.] 34.19 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 34.20 subdivision apply to this section. 34.21 (b) "Gift" has the meaning given it in section 10A.071, 34.22 subdivision 1. 34.23 (c) "Interested person" means a person or a representative 34.24 of a person or association that has a direct financial interest 34.25 in a decision thatathe local official receiving a gift from 34.26 the person is authorized to make. To be "direct," the financial 34.27 interest of the giver must be of greater consequence to the 34.28 giver than the general interest of other residents or taxpayers 34.29 of the official's governmental unit. 34.30 (d) "Local governmental unit" means a county or a statutory 34.31 or home rule charter city. 34.32 (e) "Local official" means an elected or appointed official 34.33 of a county or city or of an agency, authority, or 34.34 instrumentality of a county or city. 34.35 Subd. 2. [PROHIBITION.] An interested person may not give 34.36 a gift or request another to give a gift to a local official. A 35.1 local official may not accept a gift from an interested person. 35.2 Subd. 3. [EXCEPTIONS.] (a) The prohibitions in this 35.3 section do not apply if the gift is: 35.4 (1) a contribution as defined in section 10A.01, 35.5 subdivision 7, or 211A.01, subdivision 5, or as defined by 35.6 federal law for contributions to candidates for federal offices; 35.7 (2) services to assistanthe official in the performance 35.8 of official duties, including but not limited to providing 35.9 advice, consultation, information, and communication in 35.10 connection with legislation, and services to constituents; 35.11 (3) services of insignificant monetary value; 35.12 (4) a plaque, framed certificate, or similar memento 35.13 recognizing individual servicesin a field of specialty or to a35.14charitable cause; 35.15 (5) a trinket or memento of insignificant value; 35.16 (6) informational material ofunexceptionalinsignificant 35.17 value or that will assist the official in the performance of 35.18 official duties;or35.19 (7) food or a beverage given at areception, meal, or35.20 meeting away from therecipient's place of workoffices of the 35.21 governmental entity in which the recipient official holds office 35.22 by an organization before whom the recipient appears to make a 35.23 speech or answer questions as part of a program., even if the 35.24 meeting or program would have taken place without the attendance 35.25 of a particular speaker or participant in a group presentation 35.26 or session and reasonable expenses for travel within Minnesota 35.27 and lodging for no more than one night actually incurred and 35.28 necessary for participation in the program; or 35.29 (8) a gift of no more than $100 in value given at a 35.30 significant family event that does not take place on an annual 35.31 basis, such as a wedding or graduation, by an individual with 35.32 whom there has been a history of gift exchanges and who 35.33 personally paid for the gift without seeking business 35.34 reimbursement or a tax deduction and did not give the same or 35.35 similar gifts to anyone who was not attending the significant 35.36 family event. 36.1 (b) The prohibitions in this section do not apply if the 36.2 gift is given: 36.3 (1) because of the recipient's membership in a group, a 36.4 majority of whose members are not local officials, and an 36.5 equivalent gift is given or offered to the other members of the 36.6 group;or36.7 (2) by a national or multistate organization of 36.8 governmental organizations or public officials, if a majority of 36.9 the dues to the organization are paid from public funds, to 36.10 participants in a conference, seminar, meeting, or trip 36.11 sponsored by that organization, if an equivalent gift is given 36.12 or offered to all other participants, even if the gift to the 36.13 local official was made possible by a gift to the organization 36.14 by an interested person; 36.15 (3) to a local official attending the national convention 36.16 of a major political party or the inauguration of the president 36.17 of the United States; 36.18 (4) by an interested person who is a member of the family 36.19 of the recipient, unless the gift is given on behalf of someone 36.20 who is not a member of that family.; or 36.21 (5) to a local official who acts only as the agent for the 36.22 giver in making a gift to a foreign dignitary. 36.23 (c) The prohibitions in this section do not apply to an 36.24 employer that makes a gift or provides a meal in the normal 36.25 course of employment to an official who is an employee to the 36.26 extent that all other employees are entitled to the same 36.27 benefits. 36.28 Subd. 4. [RETURN OF GIFT.] A local official who accepts a 36.29 gift in a good faith belief that it is lawful and returns it or 36.30 gives consideration of equal or greater value for it promptly 36.31 upon learning that it was not lawful is not subject to a penalty 36.32 for violating this section. 36.33 Subd. 5. [CIRCUMVENTION PROHIBITED.] Any attempt by an 36.34 individual or association to circumvent this section by making a 36.35 gift through or on behalf of another individual or association 36.36 is a misdemeanor. 37.1 Subd. 6. [REMEDIES.] A county attorney may seek an 37.2 injunction in the district court to enforce this section. 37.3 Unless otherwise provided, a violation of this section is not a 37.4 crime. 37.5 Sec. 49. [REPEALER.] 37.6 Minnesota Statutes 1998, sections 10A.09, subdivision 3; 37.7 and 10A.25, subdivisions 4, 6, and 13, are repealed. 37.8 Sec. 50. [EFFECTIVE DATE.] 37.9 Section 10 is effective the day following final enactment 37.10 and applies to complaints pending with the board on, or filed on 37.11 or after, that date. 37.12 Section 19 is effective August 1, 1999, and applies to 37.13 committees and funds established before, on, or after that date, 37.14 but does not require disclosure of contributions or expenditures 37.15 made before that date. 37.16 Sections 26, 27, and 30 are effective for the elections in 37.17 2002 and thereafter.