SF 489

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to elections; prohibiting political parties that receive a public subsidy
from making independent expenditures; expanding the definitions of campaign
expenditures and independent expenditures; limiting multicandidate expenditures
by political parties; amending Minnesota Statutes 2004, sections 10A.01,
subdivisions 9, 18; 10A.25, subdivision 1, by adding a subdivision; 10A.275,
subdivision 1; 10A.28, subdivision 1; 10A.322.

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

Section 1.

Minnesota Statutes 2004, section 10A.01, subdivision 9, is amended to read:

Subd. 9.

Campaign expenditure.

new text begin (a) new text end "Campaign expenditure" or "expenditure"
means a purchase or payment of money or anything of value, or an advance of credit,
made or incurred for the purpose of influencing the nomination or election of a candidate
or for the purpose of promoting or defeating a ballot question.

new text begin (b) "Expenditure" includes a cost incurred to design, produce, or disseminate a
communication if the communication contains words such as "vote for," "reelect," "(name
of candidate) for (office)," "vote against," "defeat," or another phrase or campaign slogan
that in context can have no reasonable meaning other than to advocate support for or
opposition to the nomination or election of one or more clearly identified candidates.
new text end

new text begin (c) "Expenditure" is presumed to include a cost incurred to design, produce, or
disseminate a communication if the communication names or depicts one or more clearly
identified candidates; is disseminated during the 45 days before a primary election, during
the 60 days before a general election, or during a special election cycle until election day;
and the cost exceeds the following amounts for a communication naming or depicting a
candidate for the following offices:
new text end

new text begin (1) $500 for a candidate for governor, lieutenant governor, attorney general,
secretary of state, or state auditor; or
new text end

new text begin (2) $100 for a candidate for state senator or representative.
new text end

new text begin An individual or association presumed under this paragraph to have made an
expenditure may rebut the presumption by an affidavit signed by the spender and filed with
the board stating that the cost was not incurred with intent to influence the nomination,
election, or defeat of any candidate, supported by any additional evidence the spender
chooses to submit. The board may consider any additional evidence it deems relevant and
material and must determine by a preponderance of the evidence whether the cost was
incurred with intent to influence the nomination, election, or defeat of a candidate.
new text end

new text begin (d) new text end An expenditure is considered to be made in the year in which the candidate made
the purchase of goods or services or incurred an obligation to pay for goods or services.

new text begin (e) new text end An expenditure made for the purpose of defeating a candidate is considered
made for the purpose of influencing the nomination or election of that candidate or any
opponent of that candidate.

new text begin (f) new text end Except as provided in clause (1), "expenditure" includes the dollar value of
a donation in kind.

"Expenditure" does not include:

(1) noncampaign disbursements as defined in subdivision 26;

(2) services provided without compensation by an individual volunteering personal
time on behalf of a candidate, ballot question, political committee, political fund, principal
campaign committee, or party unit; deleted text begin or
deleted text end

(3) the publishing or broadcasting of news items or editorial comments by the news
media new text begin , if the news medium is not owned by or affiliated with any candidate or principal
campaign committee; or
new text end

new text begin (4) a cost incurred by an association for a communication targeted to inform solely
its own dues-paying members of the association's position on a candidate new text end .

Sec. 2.

Minnesota Statutes 2004, section 10A.01, subdivision 18, is amended to read:

Subd. 18.

Independent expenditure.

new text begin (a) new text end "Independent expenditure" means an
expenditure deleted text begin expressly advocating the election or defeat of a clearly identified candidate,
if the expenditure deleted text end new text begin that new text end is made without the express or implied consent, authorization, or
cooperation of, and not in concert with or at the request or suggestion of, any candidate or
any candidate's principal campaign committee or agent. An independent expenditure is
not a contribution to that candidate. deleted text begin An expenditure by a political party or political party
unit in a race where the political party has a candidate on the ballot is not an independent
expenditure.
deleted text end

new text begin (b) An expenditure is presumed to be not independent if, for example:
new text end

new text begin (1) in the same election cycle in which the expenditure occurs, the spender or the
spender's agent retains the professional services of an individual or entity that, in a
nonministerial capacity, provides or has provided campaign-related service, including
polling or other campaign research, media consulting or production, direct mail, or
fundraising, to a candidate supported by the spender for nomination or election to the
same office as any candidate whose nomination or election the expenditure is intended to
influence or to a political party working in coordination with the supported candidate;
new text end

new text begin (2) the expenditure pays for a communication that disseminates, in whole or in
substantial part, a broadcast or written, graphic, or other form of campaign material
designed, produced, or distributed by the candidate or the candidate's principal campaign
committee or their agents;
new text end

new text begin (3) the expenditure is based on information about the candidate's electoral campaign
plans, projects, or needs that is provided by the candidate or the candidate's principal
campaign committee or their agents directly or indirectly to the spender or the spender's
agent, with an express or tacit understanding that the spender is considering making
the expenditure;
new text end

new text begin (4) before the election, the spender or the spender's agent informs a candidate
or the principal campaign committee or agent of a candidate for the same office as a
candidate clearly identified in a communication paid for by the expenditure about the
communication's contents; timing, location, mode, or frequency of dissemination; or
intended audience; or
new text end

new text begin (5) in the same election cycle in which the expenditure occurs, the spender or the
spender's agent is serving or has served in an executive, policymaking, fundraising,
or advisory position with the candidate's campaign or has participated in strategic or
policymaking discussions with the candidate's campaign relating to the candidate's pursuit
of nomination or election to office and the candidate is pursuing the same office as a
candidate whose nomination or election the expenditure is intended to influence.
new text end

new text begin An individual or association presumed under this paragraph to have made an
expenditure that was not independent may rebut the presumption by an affidavit signed by
the spender and filed with the board stating that the expenditure was made without the
express or implied consent, authorization, or cooperation of, and not in concert with or at
the request or suggestion of, any candidate or candidate's principal campaign committee
or agent, supported by additional evidence the spender chooses to submit. The board may
consider any additional evidence it deems relevant and material and must determine by a
preponderance of the evidence whether the expenditure was independent.
new text end

new text begin (c) An expenditure by anyone other than a principal campaign committee that does
not qualify as an independent expenditure under this subdivision is deemed to be an
approved expenditure under subdivision 4.
new text end

Sec. 3.

Minnesota Statutes 2004, section 10A.25, subdivision 1, is amended to read:

Subdivision 1.

Limits are voluntary.

The expenditure limits imposed by this
section new text begin on a candidate new text end apply only to a candidate who has signed new text begin and filed new text end an agreement
under section 10A.322 to be bound by them as a condition of receiving a public subsidy
for the candidate's campaign. new text begin The prohibition on independent expenditures imposed by
subdivision 14 applies only to a political party that has signed an agreement under section
10A.322 to be bound by it as a condition of receiving a public subsidy for the party's
activities.
new text end

Sec. 4.

Minnesota Statutes 2004, section 10A.25, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Independent expenditures by political parties. new text end

new text begin (a) A political party that
receives a public subsidy must not make an independent expenditure.
new text end

new text begin (b) A political party that has agreed not to make independent expenditures as a
condition of receiving a public subsidy is released from the prohibition but remains
eligible to receive a public subsidy if a political party that has not agreed to the prohibition
makes an independent expenditure during that election cycle.
new text end

new text begin (c) A political party that has not agreed to the prohibition in this subdivision must
file written notice with the board and serve written notice on every other political party
within 24 hours after making an independent expenditure. The notice must state only that
the political party has made an independent expenditure. Upon receipt of the notice, the
political party that agreed to the prohibition is no longer subject to the prohibition but
remains eligible to receive a public subsidy.
new text end

Sec. 5.

Minnesota Statutes 2004, section 10A.275, subdivision 1, is amended to read:

Subdivision 1.

Exceptions.

Notwithstanding other provisions of this chapter, the
following expenditures by a party unit, or two or more party units acting together, with at
least one party unit being either: the state committee or the party organization within a
congressional district, county, or legislative district, are not considered contributions to or
expenditures on behalf of a candidate for the purposes of section 10A.25 or 10A.27 and
must not be allocated to candidates under section 10A.20, subdivision 3, paragraph (g):

(1) expenditures on behalf of candidates of that party generally without referring to
any of them specifically in a published, posted, or broadcast advertisement;

(2) expenditures for the preparation, display, mailing, or other distribution of an
official party sample ballot listing the names of three or more individuals whose names are
to appear on the ballot;

(3) expenditures for a telephone conversation deleted text begin including deleted text end new text begin mentioning with roughly
equal emphasis new text end the names of three or more individuals whose names are to appear on
the ballot; new text begin or
new text end

(4) deleted text begin expenditures for a political party fund-raising effort on behalf of three or more
candidates; or
deleted text end

deleted text begin (5) deleted text end expenditures for party committee staff services that benefit three or more
candidates.

Sec. 6.

Minnesota Statutes 2004, section 10A.28, subdivision 1, is amended to read:

Subdivision 1.

Exceeding expenditure limits.

new text begin (a) new text end A candidate subject to the
expenditure limits in section 10A.25 who permits the candidate's principal campaign
committee to make expenditures or permits approved expenditures to be made on the
candidate's behalf in excess of the limits imposed by section 10A.25, as adjusted by
section 10A.255, is subject to a civil penalty new text begin of new text end up to four times the amount by which the
expenditures exceeded the limit.

new text begin (b) The chair of a political party or party unit subject to the prohibition on
independent expenditures in section 10A.25, subdivision 14, who permits the political
party or party unit to make expenditures in violation of that prohibition is subject to a civil
penalty of up to four times the amount of the expenditures.
new text end

Sec. 7.

Minnesota Statutes 2004, section 10A.322, is amended to read:

10A.322 SPENDING LIMIT AGREEMENTS.

Subdivision 1.

Agreement by candidate.

(a) As a condition of receiving a public
subsidy, a candidate must sign and file with the board a written agreement in which the
candidate agrees that the candidate will comply with sections 10A.25; 10A.27, subdivision
10; 10A.31, subdivision 7, paragraph (c); and 10A.324.

(b) Before the first day of filing for office, the board must forward agreement forms
to all filing officers. The board must also provide agreement forms to candidates on
request at any time. The candidate must file the agreement with the board by deleted text begin September
deleted text end new text begin August new text end 1 preceding the candidate's general election or a special election held at the
general election. An agreement may not be filed after that date. An agreement once
filed may not be rescinded.

(c) The board must notify the commissioner of revenue of any agreement deleted text begin signed
deleted text end new text begin filed new text end under this subdivision.

(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means
of a special election and the filing period does not coincide with the filing period for
the general election, a candidate may sign and deleted text begin submit deleted text end new text begin file new text end a spending limit agreement
not later than the day after the candidate files the affidavit of candidacy or nominating
petition for the office.

deleted text begin Subd. 2. deleted text end deleted text begin How long agreement is effective. deleted text end new text begin (e) new text end The agreement, insofar as it relates
to the expenditure limits in section 10A.25, as adjusted by section 10A.255, and the
contribution limit in section 10A.27, subdivision 10, remains effective for candidates until
the dissolution of the principal campaign committee of the candidate or the end of the first
election cycle completed after the agreement was filed, whichever occurs first.

new text begin Subd. 2. new text end

new text begin Agreement by political party or party unit. new text end

new text begin (a) As a condition of
receiving a public subsidy, the chair of the state committee of a political party must sign
and file with the board a written agreement in which the state committee agrees that the
political party and all its party units will comply with section 10A.25, subdivision 14. An
agreement once filed may not be rescinded.
new text end

new text begin (b) The board must provide agreement forms to political parties and party units on
request at any time. The state chair must file the agreement with the board by February 1
of any year during an election cycle in order to be allocated money designated to the party
account on tax returns for the preceding and current taxable years.
new text end

new text begin (c) The agreement remains in effect until the end of the first general election cycle
completed after the agreement was filed or the dissolution of the political party, whichever
occurs first.
new text end

new text begin (d) The board must notify the commissioner of revenue of any agreement filed
under this subdivision.
new text end

Subd. 4.

Refund receipt forms; penalty.

new text begin (a) new text end The board must make available to a
political party deleted text begin on request and to any deleted text end new text begin or new text end candidate for whom an agreement under this
section is effective deleted text begin , deleted text end a supply of official refund receipt forms that state in boldface type
that (1) a contributor who is given a receipt form is eligible to claim a refund as provided
in section 290.06, subdivision 23, and (2) deleted text begin if the contribution is to a candidate, deleted text end that the
candidate new text begin or political party new text end has signed an agreement to limit campaign expenditures as
provided in this section. The forms must provide duplicate copies of the receipt to be
attached to the contributor's claim.

new text begin (b) If new text end a candidate deleted text begin who deleted text end does not sign an agreement under this section and deleted text begin who deleted text end new text begin the
candidate or the treasurer of the candidate's principal campaign committee new text end willfully issues
an official refund receipt deleted text begin form deleted text end or a facsimile of one to any of the candidate's contributors new text begin ,
the candidate new text end is guilty of a misdemeanor. new text begin If the state chair of a political party has not
signed an agreement not to make independent expenditures and the chair or treasurer of
a party unit willfully issues an official refund receipt or a facsimile of one to any of the
party's contributors, the chair is guilty of a misdemeanor.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective January 1, 2007, and applies to contributions received and
expenditures made on and after that date. new text end