HF 1626

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to elections; limiting independent 
  1.3             expenditures by political parties on behalf of their 
  1.4             own candidates as a condition of receiving a public 
  1.5             subsidy; requiring additional public disclosure; 
  1.6             changing times and procedures for distribution of 
  1.7             certain public subsidies; limiting certain 
  1.8             multicandidate expenditures by political parties; 
  1.9             changing certain requirements; limiting certain 
  1.10            contributions; increasing the political contribution 
  1.11            refund; imposing civil penalties; amending Minnesota 
  1.12            Statutes 2000, sections 10A.01, subdivision 18; 
  1.13            10A.20, subdivision 6b, and by adding a subdivision; 
  1.14            10A.25, subdivision 1, and by adding subdivisions; 
  1.15            10A.27, subdivisions 2 and 11; 10A.275, subdivision 1; 
  1.16            10A.28, subdivision 1; 10A.31, subdivisions 5, 7, and 
  1.17            by adding a subdivision; 10A.322; 10A.323; and 290.06, 
  1.18            subdivision 23. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  [LEGISLATIVE FINDINGS.] 
  1.21     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
  1.22  finds that while this state has a system of partial public 
  1.23  financing of campaigns, our current system still encourages 
  1.24  large amounts of private money to be used to finance campaigns.  
  1.25  This private money undermines democracy in the following ways:  
  1.26     (a) It stifles the First Amendment, which was designed "to 
  1.27  secure the widest possible dissemination of information from 
  1.28  diverse and antagonistic sources," and "to assure the unfettered 
  1.29  interchange of ideas for the bringing about of political and 
  1.30  social changes desired by the people."  Instead, heavy funding 
  1.31  of certain candidates and interests discourages other candidates 
  1.32  from running and prevents many perspectives from receiving any 
  2.1   dissemination whatsoever.  In addition, after a certain point, 
  2.2   more spending does not create more speech but has the opposite 
  2.3   impact, overwhelming the public and causing them to tune out 
  2.4   speech from any candidate. 
  2.5      (b) It undermines the First Amendment right of voters to 
  2.6   hear speech from all candidates and all perspectives and 
  2.7   undermines the core First Amendment value of open and robust 
  2.8   debate in the political process. 
  2.9      (c) It inhibits communication with the electorate by 
  2.10  candidates without access to large sums of campaign money. 
  2.11     (d) It burdens elected officials and candidates with 
  2.12  endless hours of fundraising, thus decreasing the time available 
  2.13  to carry out their public responsibilities. 
  2.14     (e) It discourages people from participating in the 
  2.15  political process.  A 1998 poll conducted by St. Cloud State 
  2.16  University found that, because of their belief that contributors 
  2.17  have more influence than noncontributors do, one-third of 
  2.18  respondents are "less likely to vote or participate in politics."
  2.19  Over half of those who said that they did not vote in the 1996 
  2.20  election said they were less likely to vote or participate 
  2.21  because of this belief. 
  2.22     (f) It violates the rights of citizens to equal and 
  2.23  meaningful participation in the democratic process. 
  2.24     (g) It creates a public perception of corruption and 
  2.25  undermines public confidence in the democratic process and 
  2.26  democratic institutions.  This perception is held by almost nine 
  2.27  out of ten Minnesotans.  The 1998 St. Cloud State University 
  2.28  poll showed that 88 percent of all Minnesotans believe elected 
  2.29  officials are more responsive to contributors than to voters who 
  2.30  do not contribute. 
  2.31     (h) It not only creates a perception of corruption, but 
  2.32  actually encourages elected officials to take money from private 
  2.33  interests that are directly affected by governmental actions. 
  2.34     (i) It diminishes the perceived, and perhaps the real, 
  2.35  accountability of elected officials to their constituents by 
  2.36  giving them incentives to be accountable to major campaign 
  3.1   contributors instead. 
  3.2      (j) It undermines the integrity of the election process by 
  3.3   making it difficult for qualified candidates without access to 
  3.4   large contributors or personal fortunes to mount competitive 
  3.5   campaigns and discourages them from running. 
  3.6      (k) It undermines the integrity of the election process by 
  3.7   placing challengers at a disadvantage, because large campaign 
  3.8   contributors tend to give their money to incumbents, thus 
  3.9   causing elections to be less competitive. 
  3.10     (l) It costs taxpayers millions of dollars for the 
  3.11  legislative and regulatory decisions made by elected officials 
  3.12  on behalf of major campaign contributors. 
  3.13     The legislature finds each of these defects on its own has 
  3.14  a corrosive impact on our democracy either by corrupting the 
  3.15  political process or by creating the appearance of corruption.  
  3.16  Accordingly, the state has a compelling interest in addressing 
  3.17  them through this act. 
  3.18     Sec. 2.  Minnesota Statutes 2000, section 10A.01, 
  3.19  subdivision 18, is amended to read: 
  3.20     Subd. 18.  [INDEPENDENT EXPENDITURE.] "Independent 
  3.21  expenditure" means an expenditure for a communication expressly 
  3.22  advocating the election or defeat of a clearly identified 
  3.23  candidate, if the expenditure is made without the express or 
  3.24  implied consent, authorization, or cooperation of, and not in 
  3.25  concert with or at the request or suggestion of, any candidate 
  3.26  or any candidate's principal campaign committee or agent.  An 
  3.27  independent expenditure is not a contribution to that 
  3.28  candidate.  An expenditure by a political party or political 
  3.29  party unit in a race where the political party has a candidate 
  3.30  on the ballot is not an independent expenditure. 
  3.31     A communication expressly advocates the election or defeat 
  3.32  of a candidate if clauses (1) and (2) and either clause (3) or 
  3.33  (4) apply: 
  3.34     (1) a candidate's name, photo, or image is used; 
  3.35     (2) the communication is made within 30 days of an election 
  3.36  related to its message; 
  4.1      (3) the communication advocates taking political action; or 
  4.2      (4) the communication implies that one should vote for or 
  4.3   against the candidate. 
  4.4      Sec. 3.  Minnesota Statutes 2000, section 10A.20, 
  4.5   subdivision 6b, is amended to read: 
  4.6      Subd. 6b.  [INDEPENDENT EXPENDITURES; NOTICE; REPORT.] (a) 
  4.7   Within 24 hours after an individual, political committee, or 
  4.8   political fund makes or becomes obligated by oral or written 
  4.9   agreement to make disseminates an independent expenditure in 
  4.10  excess of $100 $500 in a legislative race or $2,000 in a 
  4.11  statewide race, other than an expenditure by an association 
  4.12  targeted to inform solely its own dues-paying members of the 
  4.13  association's position on a candidate, the individual, political 
  4.14  committee, or political fund must file with the board an 
  4.15  affidavit notifying the board post on the board's Web site a 
  4.16  notice of the intent to make the independent expenditure 
  4.17  and serve provide a copy of the affidavit on notice to each 
  4.18  candidate in the affected race and on the treasurer of the 
  4.19  candidate's principal campaign committee.  The purpose of this 
  4.20  notification is to inform the public that the communication was 
  4.21  not publicly funded or funded by the candidate.  
  4.22     The notices must be received by the board and candidates 
  4.23  within the 24-hour period.  The affidavit notice must contain 
  4.24  the information with respect to the expenditure that is required 
  4.25  to be reported under subdivision 3, paragraph (g); except that 
  4.26  if an expenditure is reported before it is made, the notice must 
  4.27  include a reasonable estimate of the anticipated amount.  Each 
  4.28  new expenditure requires a new notice. 
  4.29     (b) An individual or association that has made an 
  4.30  independent expenditure of which notice was required under this 
  4.31  subdivision must submit to the board within 24 hours of 
  4.32  disseminating a communication, a description of the content of 
  4.33  the communication for which the expenditure was made, including 
  4.34  a copy of any printed advertisement or a transcript of any 
  4.35  broadcast advertisement. 
  4.36     (c) An individual or the treasurer of a political committee 
  5.1   or political fund who fails to give notice as required by this 
  5.2   subdivision, or who files a false affidavit of notice, is guilty 
  5.3   of a gross misdemeanor and is subject to a civil fine of up to 
  5.4   four times the amount of the independent expenditure stated in 
  5.5   the notice or of which notice was required, whichever is greater.
  5.6      Sec. 4.  Minnesota Statutes 2000, section 10A.20, is 
  5.7   amended by adding a subdivision to read: 
  5.8      Subd. 15.  [INTERNET PUBLICATION.] (a) The board must 
  5.9   publish the following information on its Web site: 
  5.10     (1) information reported pursuant to subdivision 3, 
  5.11  paragraph (b), by a principal campaign committee, except for the 
  5.12  home street addresses of contributors; and 
  5.13     (2) information reported on any independent expenditure 
  5.14  totaling $1,000 or more in any legislative district. 
  5.15     (b) The information must be published within seven days 
  5.16  after the report is due for pre-primary and pre-general election 
  5.17  reports. 
  5.18     (c) The publication must be in a form that permits a user 
  5.19  of the Web site to search the reports and prepare comparisons 
  5.20  and cross-tabulations among the various contributors and 
  5.21  principal campaign committees. 
  5.22     Sec. 5.  Minnesota Statutes 2000, section 10A.25, 
  5.23  subdivision 1, is amended to read: 
  5.24     Subdivision 1.  [LIMITS ARE VOLUNTARY.] The expenditure 
  5.25  limits imposed by this section on a candidate apply only to a 
  5.26  candidate who has signed an agreement under section 10A.322 to 
  5.27  be bound by them as a condition of receiving a public subsidy 
  5.28  for the candidate's campaign.  The prohibition imposed by this 
  5.29  section on a political party applies only to a political party 
  5.30  that has signed an agreement under section 10A.322 to be bound 
  5.31  by it as a condition of receiving a public subsidy for the 
  5.32  party's activities or participating in the political 
  5.33  contribution refund program under section 290.06, subdivision 23.
  5.34     Sec. 6.  Minnesota Statutes 2000, section 10A.25, is 
  5.35  amended by adding a subdivision to read: 
  5.36     Subd. 14.  [INDEPENDENT EXPENDITURES BY POLITICAL PARTIES.] 
  6.1   A political party or party unit must not make an independent 
  6.2   expenditure. 
  6.3      Sec. 7.  Minnesota Statutes 2000, section 10A.25, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 15.  [MATCHING INDEPENDENT EXPENDITURES.] (a) Within 
  6.6   24 hours after receipt of a notice of independent expenditures 
  6.7   under section 10B.12, subdivision 10, the board must notify each 
  6.8   candidate in the affected race of the amount of the independent 
  6.9   expenditure.  For purposes of this subdivision, before the 
  6.10  primary election, "opponent" means the other candidates whose 
  6.11  names are on the ballot for the primary of the same major 
  6.12  party.  After the primary, "opponent" includes the candidates 
  6.13  whose names are on the ballot for the primary of the same major 
  6.14  party or, if there are none, the candidates whose names will be 
  6.15  on the ballot for the general election.  
  6.16     (b) If the independent expenditure advocates the defeat of 
  6.17  a candidate, whether or not it also advocates the election of 
  6.18  another candidate, the spending limit of the candidate is 
  6.19  increased by the amount of the independent expenditure, or two 
  6.20  times that amount if it is made within 14 days of the election. 
  6.21     (c) If the independent expenditure advocates the election 
  6.22  of a candidate, the opponent's spending limit is increased by 
  6.23  the amount of the independent expenditure.  
  6.24     (d) An independent expenditure matching account is 
  6.25  established in the state treasury.  The account includes money 
  6.26  appropriated to the account by the legislature, repayments by 
  6.27  candidates and their committees of loans made from the account, 
  6.28  and interest earned on money in the account.  The money in the 
  6.29  account is appropriated to the board to make loans to candidates 
  6.30  who: 
  6.31     (1) are the targets of independent expenditures made during 
  6.32  the 14 days before a primary or election; 
  6.33     (2) have agreed to be bound by the spending limits in this 
  6.34  section; and 
  6.35     (3) do not have enough money to respond to the independent 
  6.36  expenditure by exceeding their spending limit under paragraph 
  7.1   (b) or (c). 
  7.2      To receive a loan from the account, a candidate must agree 
  7.3   to repay the loan within six months. 
  7.4      (e) A candidate who is the target of an independent 
  7.5   expenditure may accept additional contributions from political 
  7.6   party units to match the amount of the independent expenditure. 
  7.7      Sec. 8.  Minnesota Statutes 2000, section 10A.27, 
  7.8   subdivision 2, is amended to read: 
  7.9      Subd. 2.  [POLITICAL PARTY LIMIT.] A candidate must not 
  7.10  permit the candidate's principal campaign committee to accept 
  7.11  contributions from any political party units in aggregate in 
  7.12  excess of ten times the amount that may be contributed to that 
  7.13  candidate as set forth in subdivision 1 or 20 times that amount 
  7.14  in the case of a candidate for state senator. 
  7.15     Sec. 9.  Minnesota Statutes 2000, section 10A.27, 
  7.16  subdivision 11, is amended to read: 
  7.17     Subd. 11.  [CONTRIBUTIONS FROM CERTAIN TYPES OF 
  7.18  CONTRIBUTORS.] A candidate must not permit the candidate's 
  7.19  principal campaign committee to accept a: 
  7.20     (1) any contribution from a political committee, or 
  7.21  political fund,; or 
  7.22     (2) a contribution from a lobbyist, or large contributor, 
  7.23  if the contribution will that would cause the aggregate 
  7.24  contributions from those types of contributors to exceed an 
  7.25  amount equal to 20 percent of the expenditure limits for the 
  7.26  office sought by the candidate.  For purposes of this 
  7.27  subdivision clause, "large contributor" means an individual, 
  7.28  other than the candidate, who contributes an amount that is more 
  7.29  than $100 and more than one-half the amount an individual may 
  7.30  contribute. 
  7.31     Sec. 10.  Minnesota Statutes 2000, section 10A.275, 
  7.32  subdivision 1, is amended to read: 
  7.33     Subdivision 1.  [EXCEPTIONS.] Notwithstanding other 
  7.34  provisions of this chapter, the following expenditures by a 
  7.35  party unit, or two or more party units acting together, with at 
  7.36  least one party unit being either:  the state committee or the 
  8.1   party organization within a congressional district, county, or 
  8.2   legislative district, are not considered contributions to or 
  8.3   expenditures on behalf of a candidate for the purposes of 
  8.4   section 10A.25 or 10A.27 and must not be allocated to candidates 
  8.5   under section 10A.20, subdivision 3, paragraph (g): 
  8.6      (1) expenditures on behalf of candidates of that party 
  8.7   generally without referring to any of them specifically in a 
  8.8   published, posted, or broadcast advertisement; 
  8.9      (2) expenditures for the preparation, display, mailing, or 
  8.10  other distribution of an official party sample ballot 
  8.11  listing with roughly equal emphasis the names of three or more 
  8.12  individuals whose names are to appear on the ballot; or 
  8.13     (3) expenditures for a telephone conversation including 
  8.14  mentioning with roughly equal emphasis the names of three or 
  8.15  more individuals whose names are to appear on the ballot; 
  8.16     (4) expenditures for a political party fundraising effort 
  8.17  on behalf of three or more candidates; or 
  8.18     (5) expenditures for party committee staff services that 
  8.19  benefit three or more candidates.  
  8.20     Sec. 11.  Minnesota Statutes 2000, section 10A.28, 
  8.21  subdivision 1, is amended to read: 
  8.22     Subdivision 1.  [EXCEEDING EXPENDITURE LIMITS.] (a) A 
  8.23  candidate subject to the expenditure limits in section 10A.25 
  8.24  who permits the candidate's principal campaign committee to make 
  8.25  expenditures or permits approved expenditures to be made on the 
  8.26  candidate's behalf in excess of the limits imposed by section 
  8.27  10A.25, as adjusted by section 10A.255, is subject to a civil 
  8.28  fine of up to four times the amount by which the expenditures 
  8.29  exceeded the limit. 
  8.30     (b) The chair of a political party or party unit subject to 
  8.31  the prohibition in section 10A.25 that makes expenditures in 
  8.32  violation of section 10A.25 is subject to a civil fine of up to 
  8.33  four times the amount of the expenditures. 
  8.34     Sec. 12.  Minnesota Statutes 2000, section 10A.31, 
  8.35  subdivision 5, is amended to read: 
  8.36     Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
  9.1   calendar year the money in the general account must be allocated 
  9.2   to candidates as follows: 
  9.3      (1) 21 percent for the offices of governor and lieutenant 
  9.4   governor together; 
  9.5      (2) 4.2 percent for the office of attorney general; 
  9.6      (3) 2.4 percent each for the offices of secretary of state 
  9.7   and state auditor; 
  9.8      (4) in each calendar year during the period in which state 
  9.9   senators serve a four-year term, 23-1/3 percent for the office 
  9.10  of state senator, and 46-2/3 percent for the office of state 
  9.11  representative; and 
  9.12     (5) in each calendar year during the period in which state 
  9.13  senators serve a two-year term, 35 percent each for the offices 
  9.14  of state senator and state representative. 
  9.15     (b)  [PARTY ACCOUNT.] In each calendar year the money in 
  9.16  each party account must be allocated as follows: 
  9.17     (1) 14 percent for the offices of governor and lieutenant 
  9.18  governor together; 
  9.19     (2) 2.8 percent for the office of attorney general; 
  9.20     (3) 1.6 percent each for the offices of secretary of state 
  9.21  and state auditor; 
  9.22     (4) in each calendar year during the period in which state 
  9.23  senators serve a four-year term, 23-1/3 percent for the office 
  9.24  of state senator, and 46-2/3 percent for the office of state 
  9.25  representative; 
  9.26     (5) in each calendar year during the period in which state 
  9.27  senators serve a two-year term, 35 percent each for the offices 
  9.28  of state senator and state representative; and 
  9.29     (6) ten percent for the state committee of a political 
  9.30  party that has signed and filed with the board a spending limit 
  9.31  agreement under section 10A.322. 
  9.32     Money allocated to each state committee under clause (6) 
  9.33  must be deposited in a separate account and must be spent for 
  9.34  only those items enumerated in section 10A.275.  Money allocated 
  9.35  to a state committee under clause (6) must be paid to the 
  9.36  committee by the board as it is received in the account on a 
 10.1   monthly basis, with payment on the 15th day of the calendar 
 10.2   month following the month in which the returns were processed by 
 10.3   the department of revenue, provided that these distributions 
 10.4   would be equal to 90 percent of the amount of money indicated in 
 10.5   the department of revenue's weekly unedited reports of income 
 10.6   tax returns and property tax refund returns processed in the 
 10.7   month, as notified by the department of revenue to the board.  
 10.8   The amounts paid to each state committee are subject to biennial 
 10.9   adjustment and settlement at the time of each certification 
 10.10  required of the commissioner of revenue under subdivisions 7 and 
 10.11  10.  If the total amount of payments received by a state 
 10.12  committee for the period reflected on a certification by the 
 10.13  department of revenue is different from the amount that should 
 10.14  have been received during the period according to the 
 10.15  certification, each subsequent monthly payment must be increased 
 10.16  or decreased to the fullest extent possible until the amount of 
 10.17  the overpayment is recovered or the underpayment is distributed. 
 10.18     Money not allocated to a state committee under clause (6) 
 10.19  because the state committee has not signed and filed with the 
 10.20  board a spending limit agreement under section 10A.322 must be 
 10.21  canceled to the general fund. 
 10.22     Sec. 13.  Minnesota Statutes 2000, section 10A.31, 
 10.23  subdivision 7, is amended to read: 
 10.24     Subd. 7.  [DISTRIBUTION OF GENERAL ACCOUNT.] (a) Within two 
 10.25  weeks after certification by the state canvassing board of As 
 10.26  soon as the board has obtained the results of the general 
 10.27  primary election from the secretary of state, but no later than 
 10.28  one week after certification of the primary results by the state 
 10.29  canvassing board, the board must distribute the available money 
 10.30  in the general account, as certified by the commissioner of 
 10.31  revenue on November September 1 and according to allocations set 
 10.32  forth in subdivision 5, in equal amounts to all candidates whose 
 10.33  names are to appear on the ballot in the general election and 
 10.34  who: 
 10.35     (1) have signed a spending limit agreement under section 
 10.36  10A.322; and 
 11.1      (2) have filed the affidavit of contributions required by 
 11.2   section 10A.323;. 
 11.3      (3) were opposed in either the primary election or the 
 11.4   general election; and 
 11.5      (4) are either a candidate for statewide office who 
 11.6   received at least five percent of the votes cast in the general 
 11.7   election for that office or a candidate for legislative office 
 11.8   who received at least ten percent of the votes cast in the 
 11.9   general election for that seat. 
 11.10     (b) The public subsidy under this subdivision may not be 
 11.11  paid in an amount that would cause the sum of the public subsidy 
 11.12  paid from the party account plus the public subsidy paid from 
 11.13  the general account to exceed 50 percent of the expenditure 
 11.14  limit for the candidate or 50 percent of the expenditure limit 
 11.15  that would have applied to the candidate if the candidate had 
 11.16  not been freed from expenditure limits under section 10A.25, 
 11.17  subdivision 10.  Money from the general account not paid to a 
 11.18  candidate because of the 50 percent limit must be distributed 
 11.19  equally among all other qualifying candidates for the same 
 11.20  office until all have reached the 50 percent limit or the 
 11.21  balance in the general account is exhausted. 
 11.22     Sec. 14.  Minnesota Statutes 2000, section 10A.31, is 
 11.23  amended by adding a subdivision to read: 
 11.24     Subd. 7a.  [PENALTY FOR FAILING TO FILE REPORT.] Payments 
 11.25  under subdivisions 6 and 7 to a candidate who fails to file the 
 11.26  campaign report due before the primary must be reduced as 
 11.27  provided by this subdivision.  Payments must be reduced or, if 
 11.28  the payments have already been made, a penalty must be assessed, 
 11.29  in the amount of: 
 11.30     (1) two percent per day from the first to the seventh day 
 11.31  after the report is due; and 
 11.32     (2) five percent per day from the eighth to the 21st day 
 11.33  after the report is due. 
 11.34  If a report is not filed by the 21st day after it is due, a 
 11.35  candidate must not receive any public subsidy under subdivision 
 11.36  6 or 7. 
 12.1      Sec. 15.  Minnesota Statutes 2000, section 10A.322, is 
 12.2   amended to read: 
 12.3      10A.322 [SPENDING LIMIT AGREEMENTS.] 
 12.4      Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
 12.5   condition of receiving a public subsidy, a candidate must sign 
 12.6   and file with the board a written agreement in which the 
 12.7   candidate agrees that the candidate will comply with sections 
 12.8   10A.25; 10A.27, subdivision 10; and 10A.324. 
 12.9      (b) Before the first day of filing for office, the board 
 12.10  must forward agreement forms to all filing officers.  The board 
 12.11  must also provide agreement forms to candidates on request at 
 12.12  any time.  The candidate must file the agreement with the board 
 12.13  by September August 1 preceding the candidate's general election 
 12.14  or a special election held at the general election.  An 
 12.15  agreement may not be filed after that date.  An agreement once 
 12.16  filed may not be rescinded. 
 12.17     (c) The board must notify the commissioner of revenue of 
 12.18  any agreement signed filed under this subdivision. 
 12.19     (d) Notwithstanding paragraph (b), if a vacancy occurs that 
 12.20  will be filled by means of a special election and the filing 
 12.21  period does not coincide with the filing period for the general 
 12.22  election, a candidate may sign and submit file a spending limit 
 12.23  agreement not later than the day after the candidate files the 
 12.24  affidavit of candidacy or nominating petition for the office. 
 12.25     Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] (e) The 
 12.26  agreement, insofar as it relates to the expenditure limits in 
 12.27  section 10A.25, as adjusted by section 10A.255, and the 
 12.28  contribution limit in section 10A.27, subdivision 10, remains 
 12.29  effective for candidates until the dissolution of the principal 
 12.30  campaign committee of the candidate or the end of the first 
 12.31  election cycle completed after the agreement was filed, 
 12.32  whichever occurs first. 
 12.33     Subd. 2a.  [AGREEMENT BY POLITICAL PARTY.] (a) As a 
 12.34  condition of receiving a public subsidy, the chair of the state 
 12.35  committee of a political party must sign and file with the board 
 12.36  a written agreement in which the state committee agrees that the 
 13.1   political party and all its party units will comply with section 
 13.2   10A.25.  An agreement once filed may not be rescinded. 
 13.3      (b) The board must provide agreement forms to political 
 13.4   parties on request at any time.  The state chair must file the 
 13.5   agreement with the board by February 1 in order to be allocated 
 13.6   money credited to the party account for the preceding taxable 
 13.7   year. 
 13.8      (c) The spending limit agreement remains in effect until 
 13.9   the end of the first general election cycle completed after the 
 13.10  agreement was filed or the dissolution of the political party, 
 13.11  whichever occurs first. 
 13.12     (d) The board must notify the commissioner of revenue of 
 13.13  any agreement filed under this subdivision. 
 13.14     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board must 
 13.15  make available to a political party on request and to any or 
 13.16  candidate for whom an agreement under this section is effective, 
 13.17  a supply of official refund receipt forms that state in boldface 
 13.18  type that (1) a contributor who is given a receipt form is 
 13.19  eligible to claim a refund as provided in section 290.06, 
 13.20  subdivision 23, and (2) if the contribution is to a candidate, 
 13.21  that the candidate or political party has signed an agreement to 
 13.22  limit campaign expenditures as provided in this section.  The 
 13.23  forms must provide duplicate copies of the receipt to be 
 13.24  attached to the contributor's claim.  A candidate who does not 
 13.25  sign an agreement under this section and who willfully issues an 
 13.26  official refund receipt form or a facsimile of one to any of the 
 13.27  candidate's contributors is guilty of a misdemeanor.  If the 
 13.28  state chair of a political party has not signed an agreement 
 13.29  under this section and the chair of a party unit willfully 
 13.30  issues an official refund receipt form or a facsimile of one to 
 13.31  any of the party's contributors, the chair of the party unit is 
 13.32  subject to a civil fine of up to $1,000. 
 13.33     Sec. 16.  Minnesota Statutes 2000, section 10A.323, is 
 13.34  amended to read: 
 13.35     10A.323 [AFFIDAVIT OF CONTRIBUTIONS.] 
 13.36     In addition to the requirements of section 10A.322, to be 
 14.1   eligible to receive a public subsidy under section 10A.31 a 
 14.2   candidate or the candidate's treasurer must file an affidavit 
 14.3   with the board stating that during that calendar year the 
 14.4   candidate has accumulated contributions from persons eligible to 
 14.5   vote in this state in at least the amount indicated for the 
 14.6   office sought, counting only the first $50 received from each 
 14.7   contributor: 
 14.8      (1) candidates for governor and lieutenant governor running 
 14.9   together, $35,000 $52,500; 
 14.10     (2) candidates for attorney general, $15,000 $22,500; 
 14.11     (3) candidates for secretary of state and state auditor, 
 14.12  separately, $6,000 $9,000; 
 14.13     (4) candidates for the senate, $3,000 $4,500; and 
 14.14     (5) candidates for the house of 
 14.15  representatives, $1,500 $2,250. 
 14.16     The affidavit must state the total amount of contributions 
 14.17  that have been received from persons eligible to vote in this 
 14.18  state, disregarding the portion of any contribution in excess of 
 14.19  $50.  
 14.20     The candidate or the candidate's treasurer must submit the 
 14.21  affidavit required by this section to the board in writing by 
 14.22  September 1 of the general election year to receive the payment 
 14.23  made following the primary election and by November 1 to receive 
 14.24  the payment made following the general election.  
 14.25     A candidate for a vacancy to be filled at a special 
 14.26  election for which the filing period does not coincide with the 
 14.27  filing period for the general election must submit the affidavit 
 14.28  required by this section to the board within five days after 
 14.29  filing the affidavit of candidacy. 
 14.30     Sec. 17.  Minnesota Statutes 2000, section 290.06, 
 14.31  subdivision 23, is amended to read: 
 14.32     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
 14.33  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
 14.34  amount of the taxpayer's contributions made in the calendar year 
 14.35  to candidates and to a political party.  The maximum refund for 
 14.36  an individual must not exceed $50 is $100 and for a married 
 15.1   couple, filing jointly, must not exceed $100 is $200.  A refund 
 15.2   of a contribution is allowed only if the taxpayer files a form 
 15.3   required by the commissioner and attaches to the form a copy of 
 15.4   an official refund receipt form issued by the candidate or party 
 15.5   and signed by the candidate, the treasurer of the candidate's 
 15.6   principal campaign committee, or the chair or treasurer of the 
 15.7   party unit, after the contribution was received.  The receipt 
 15.8   forms must be numbered, and the data on the receipt that are not 
 15.9   public must be made available to the campaign finance and public 
 15.10  disclosure board upon its request.  A claim must be filed with 
 15.11  the commissioner no sooner than January 1 of the calendar year 
 15.12  in which the contribution was made and no later than April 15 of 
 15.13  the calendar year following the calendar year in which the 
 15.14  contribution was made.  A taxpayer may file only one claim per 
 15.15  calendar year.  Amounts paid by the commissioner after June 15 
 15.16  of the calendar year following the calendar year in which the 
 15.17  contribution was made must include interest at the rate 
 15.18  specified in section 270.76. 
 15.19     (b) No refund is allowed under this subdivision for a 
 15.20  contribution to a candidate unless the candidate: 
 15.21     (1) has signed and filed an agreement to limit campaign 
 15.22  expenditures as provided in section 10A.322; 
 15.23     (2) is seeking an office for which voluntary spending 
 15.24  limits are specified in section 10A.25; and 
 15.25     (3) has designated a principal campaign committee.  
 15.26     This subdivision does not limit the campaign expenditures 
 15.27  of a candidate who does not sign an agreement but accepts a 
 15.28  contribution for which the contributor improperly claims a 
 15.29  refund.  
 15.30     No refund is allowed under this subdivision for a 
 15.31  contribution to a political party or party unit unless the state 
 15.32  chair of the political party has signed and filed an agreement 
 15.33  to limit campaign expenditures as provided in section 10A.322. 
 15.34     (c) For purposes of this subdivision, "political party" 
 15.35  means a major political party as defined in section 200.02, 
 15.36  subdivision 7, or a minor political party qualifying for 
 16.1   inclusion on the income tax or property tax refund form under 
 16.2   section 10A.31, subdivision 3a. 
 16.3      A "major party" or "minor party" includes the aggregate of 
 16.4   that party's organization within each house of the legislature, 
 16.5   the state party organization, and the party organization within 
 16.6   congressional districts, counties, legislative districts, 
 16.7   municipalities, and precincts. 
 16.8      "Candidate" means a candidate as defined in section 10A.01, 
 16.9   subdivision 10, except a candidate for judicial office.  
 16.10     "Contribution" means a gift of money. 
 16.11     (d) The commissioner shall make copies of the form 
 16.12  available to the public and candidates upon request. 
 16.13     (e) The following data collected or maintained by the 
 16.14  commissioner under this subdivision are private:  the identities 
 16.15  of individuals claiming a refund, the identities of candidates 
 16.16  to whom those individuals have made contributions, and the 
 16.17  amount of each contribution.  
 16.18     (f) The commissioner shall report to the campaign finance 
 16.19  and public disclosure board by each August 1 a summary showing 
 16.20  the total number and aggregate amount of political contribution 
 16.21  refunds made on behalf of each candidate and each political 
 16.22  party.  These data are public. 
 16.23     (g) The amount necessary to pay claims for the refund 
 16.24  provided in this section is appropriated from the general fund 
 16.25  to the commissioner of revenue. 
 16.26     Sec. 18.  [NONSEVERABILITY.] 
 16.27     Notwithstanding Minnesota Statutes, section 645.20, if a 
 16.28  provision of section 7 (Minnesota Statutes, section 10A.25, 
 16.29  subdivision 15) is found to be unconstitutional and void, the 
 16.30  provisions of section 6 (Minnesota Statutes, section 10A.25, 
 16.31  subdivision 14) are also void. 
 16.32     Sec. 19.  [EFFECTIVE DATE.] 
 16.33     Section 17 is effective for contributions made after June 
 16.34  30, 2002.  The remainder of this act is effective January 1, 
 16.35  2002, and applies to contributions received and expenditures 
 16.36  made on and after that date.