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HF 396

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/11/2022 11:38am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/28/2021
1st Engrossment Posted on 02/18/2021

Current Version - 1st Engrossment

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A bill for an act
relating to campaign finance; modifying provisions applying to the financing of
campaigns for Hennepin County elections and for certain political subdivisions in
Hennepin County; amending Minnesota Statutes 2020, sections 10A.01,
subdivisions 4, 7, 9, 11, 16a, 17c, 18, 20, 27, 28, by adding a subdivision; 10A.12,
subdivisions 1, 2; 10A.121, subdivision 2; 10A.13, subdivision 1; 10A.17,
subdivision 4; 10A.20, subdivisions 3, 6a, by adding a subdivision; 383B.041;
repealing Minnesota Statutes 2020, sections 10A.15, subdivision 6; 383B.042;
383B.043; 383B.044; 383B.045; 383B.046; 383B.047; 383B.048; 383B.049;
383B.05; 383B.051; 383B.052; 383B.053; 383B.054; 383B.055; 383B.056;
383B.057.

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

Section 1.

Minnesota Statutes 2020, section 10A.01, subdivision 4, is amended to read:


Subd. 4.

Approved expenditure.

"Approved expenditure" means an expenditure made
on behalf of a candidate new text begin or a local candidate new text end by an entity other than the new text begin candidate's new text end principal
campaign committee deleted text begin of the candidatedeleted text end new text begin or the local candidatenew text end , if the expenditure is made with
the authorization or expressed or implied consent of, or in cooperation or in concert with,
or at the request or suggestion of the candidatenew text begin or local candidatenew text end , the candidate's principal
campaign committee, or the candidate's new text begin or local candidate's new text end agent. An approved expenditure
is a contribution to that candidatenew text begin or local candidatenew text end .

Sec. 2.

Minnesota Statutes 2020, section 10A.01, subdivision 7, is amended to read:


Subd. 7.

Ballot question.

"Ballot question" means a question or proposition that is placed
on the ballot and that may be voted on bynew text begin :
new text end

new text begin (1)new text end all voters of the statedeleted text begin .deleted text end new text begin ;
new text end

new text begin (2) all voters of Hennepin County;
new text end

new text begin (3) all voters of any home rule charter city or statutory city located wholly within
Hennepin County and having a population of 75,000 or more; or
new text end

new text begin (4) all voters of Special School District No. 1.
new text end

"Promoting or defeating a ballot question" includes activities, other than lobbying
activities, related to qualifying the question for placement on the ballot.

Sec. 3.

Minnesota Statutes 2020, section 10A.01, subdivision 9, is amended to read:


Subd. 9.

Campaign expenditure.

"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 new text begin or a local
candidate
new text end or for the purpose of promoting or defeating a ballot question.

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.

An expenditure made for the purpose of defeating a candidate new text begin or a local candidate new text end is
considered made for the purpose of influencing the nomination or election of that candidate
new text begin or local candidate new text end or any opponent of that candidatenew text begin or local candidatenew 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 candidatenew text begin or a local candidatenew text end , ballot question, political committee, political
fund, principal campaign committee, or party unit;

(3) the publishing or broadcasting of news items or editorial comments by the news
media; or

(4) an individual's unreimbursed personal use of an automobile owned by the individual
and used by the individual while volunteering personal time.

Sec. 4.

Minnesota Statutes 2020, section 10A.01, is amended by adding a subdivision to
read:


new text begin Subd. 10d. new text end

new text begin Local candidate. new text end

new text begin "Local candidate" means an individual who seeks
nomination or election to:
new text end

new text begin (1) any county office in Hennepin County;
new text end

new text begin (2) any city office in any home rule charter city or statutory city located wholly within
Hennepin County and having a population of 75,000 or more; or
new text end

new text begin (3) the school board in Special School District No. 1.
new text end

Sec. 5.

Minnesota Statutes 2020, section 10A.01, subdivision 11, is amended to read:


Subd. 11.

Contribution.

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

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

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

Sec. 6.

Minnesota Statutes 2020, section 10A.01, subdivision 16a, is amended to read:


Subd. 16a.

Expressly advocating.

"Expressly advocating" means that a communication
clearly identifies a candidate new text begin or a local candidate new text end and uses words or phrases of express
advocacy.

Sec. 7.

Minnesota Statutes 2020, section 10A.01, subdivision 17c, is amended to read:


Subd. 17c.

General treasury money.

"General treasury money" means money that an
association other than a principal campaign committee, party unit, or political committee
accumulates through membership dues and fees, donations to the association for its general
purposes, and income from the operation of a business. General treasury money does not
include money collected to influence the nomination or election of candidatesnew text begin or local
candidates
new text end or to promote or defeat a ballot question.

Sec. 8.

Minnesota Statutes 2020, section 10A.01, subdivision 18, is amended to read:


Subd. 18.

Independent expenditure.

"Independent expenditure" means an expenditure
expressly advocating the election or defeat of a clearly identified candidatenew text begin or local candidatenew text end ,
if the expenditure 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 agentnew text begin or any local candidate or local
candidate's agent
new text end . An independent expenditure is not a contribution to that candidatenew text begin or
local candidate
new text end . An independent expenditure does not include the act of announcing a formal
public endorsement of a candidatenew text begin or local candidatenew text end for public office, unless the act is
simultaneously accompanied by an expenditure that would otherwise qualify as an
independent expenditure under this subdivision.

Sec. 9.

Minnesota Statutes 2020, section 10A.01, subdivision 20, is amended to read:


Subd. 20.

Loan.

"Loan" means an advance of money or anything of value made to a
political committee, political fund, principal campaign committee, new text begin local candidate, new text end or party
unit.

Sec. 10.

Minnesota Statutes 2020, section 10A.01, subdivision 27, is amended to read:


Subd. 27.

Political committee.

"Political committee" means an association whose major
purpose is to influence the nomination or election of one or more candidatesnew text begin or local
candidates
new text end or to promote or defeat a ballot question, other than a principal campaign
committeenew text begin , local candidate,new text end or a political party unit.

Sec. 11.

Minnesota Statutes 2020, section 10A.01, subdivision 28, is amended to read:


Subd. 28.

Political fund.

"Political fund" means an accumulation of dues or voluntary
contributions by an association other than a political committee, principal campaign
committee, or party unit, if the accumulation is collected or expended to influence the
nomination or election of one or more candidates new text begin or local candidates new text end or to promote or defeat
a ballot question. The term political fund as used in this chapter may also refer to the
association acting through its political fund.

Sec. 12.

Minnesota Statutes 2020, section 10A.12, subdivision 1, is amended to read:


Subdivision 1.

When required for contributions and approved expenditures.

An
association other than a political committee or party unit may not contribute more than $750
in aggregate in any calendar year to candidates,new text begin local candidates,new text end political committees, or
party units or make approved expenditures of more than $750 in aggregate in any calendar
year unless the contribution or expenditure is made through a political fund.

Sec. 13.

Minnesota Statutes 2020, section 10A.12, subdivision 2, is amended to read:


Subd. 2.

Commingling prohibited.

The contents of an association's political fund may
not be commingled with other funds or with the personal funds of an officer or member of
the association or the fund. It is not commingling for an association that uses only its own
general treasury money to make expenditures and disbursements permitted under section
10A.121, subdivision 1, directly from the depository used for its general treasury money.
An association that accepts more than $1,500 in new text begin aggregate in new text end contributions to influence the
nomination or election of candidates new text begin or local candidates new text end or more than $5,000 in contributions
to promote or defeat a ballot question must establish a separate depository for those
contributions.

Sec. 14.

Minnesota Statutes 2020, section 10A.121, subdivision 2, is amended to read:


Subd. 2.

Penalty.

(a) An independent expenditure political committee or independent
expenditure political fund is subject to a civil penalty of up to four times the amount of the
contribution or approved expenditure if it does the following:

(1) makes a contribution to a candidatenew text begin , local candidatenew text end , party unit, political committee,
or political fund other than an independent expenditure political committee or an independent
expenditure political fund; or

(2) makes an approved expenditure.

(b) No other penalty provided in law may be imposed for conduct that is subject to a
civil penalty under this section.

Sec. 15.

Minnesota Statutes 2020, section 10A.13, subdivision 1, is amended to read:


Subdivision 1.

Accounts; penalty.

The treasurer of a political committee, political fund,
principal campaign committee, or party unit must keep an account of:

(1) the sum of all contributions, except any donation in kind valued at $20 or less, made
to the committee, fund, or party unit;

(2) the name and address of each source of a contribution made to the committee, fund,
or party unit in excess of $20, together with the date and amount of each;

(3) each expenditure made by the committee, fund, or party unit, together with the date
and amount;

(4) each approved expenditure made on behalf of the committee, fund, or party unit,
together with the date and amount; and

(5) the name and address of each political committee, political fund, principal campaign
committee,new text begin local candidate,new text end or party unit to which contributions in excess of $20 have been
made, together with the date and amount.

Any individual who knowingly violates this subdivision is subject to a civil penalty
imposed by the board of up to $1,000.

Sec. 16.

Minnesota Statutes 2020, section 10A.17, subdivision 4, is amended to read:


Subd. 4.

Independent expenditures.

An individual, political committee, political fund,
principal campaign committee, or party unit that independently solicits or accepts
contributions or makes independent expenditures on behalf of a candidatenew text begin or local candidatenew text end
must publicly disclose that the expenditure is an independent expenditure. All written and
broadcast communications with those from whom contributions are independently solicited
or accepted or to whom independent expenditures are made on behalf of a candidatenew text begin or local
candidate
new text end must contain a statement in substantially the form provided in section 211B.04,
subdivision 2
. The statement must be on the front page of all written communications and
at the end of all broadcast communications made by that individual, political committee,
political fund, principal campaign committee, or party unit on the candidate'snew text begin or local
candidate's
new text end behalf.

Sec. 17.

Minnesota Statutes 2020, section 10A.20, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Local election reports. new text end

new text begin (a) This subdivision applies to a political committee,
political fund, or political party unit that during a non-general election year:
new text end

new text begin (1) spends in aggregate more than $200 to influence the nomination or election of local
candidates;
new text end

new text begin (2) spends in aggregate more than $200 to make independent expenditures on behalf of
local candidates; or
new text end

new text begin (3) spends in aggregate more than $200 to promote or defeat ballot questions defined
in section 10A.01, subdivision 7, clause (2), (3), or (4).
new text end

new text begin (b) In addition to the reports required by subdivision 2, the entities listed in paragraph
(a) must file the following reports in each non-general election year:
new text end

new text begin (1) a first-quarter report covering the calendar year through March 31, which is due
April 14;
new text end

new text begin (2) a report covering the calendar year through May 31, which is due June 14;
new text end

new text begin (3) a pre-primary-election report due 15 days before the local primary election date
specified in section 205.065;
new text end

new text begin (4) a pre-general-election report due 42 days before the local general election; and
new text end

new text begin (5) a pre-general-election report due ten days before a local general election.
new text end

new text begin The reporting obligations in this paragraph begin with the first report due after the
reporting period in which the entity reaches the spending threshold specified in paragraph
(a).
new text end

Sec. 18.

Minnesota Statutes 2020, section 10A.20, subdivision 3, is amended to read:


Subd. 3.

Contents of report.

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

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

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

(d) The report must disclose the sum of contributions to the reporting entity during the
reporting period.

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

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

(g) The report must disclose the sum of all receipts of the reporting entity during the
reporting period.

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

(i) The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

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

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

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

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

(n) The report must disclose the sum of all noncampaign disbursements made within
the year by or on behalf of the reporting entity.

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

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

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

Sec. 19.

Minnesota Statutes 2020, section 10A.20, subdivision 6a, is amended to read:


Subd. 6a.

Statement of independence.

An individual, political committee, political
fund, or party unit filing a report or statement disclosing an independent expenditure under
subdivision 3 or 6 must file with the report a sworn statement that the disclosed expenditures
were not made with the authorization or expressed or implied consent of, or in cooperation
or in concert with, or at the request or suggestion of any candidatenew text begin ;new text end deleted text begin ordeleted text end any candidate's
principal campaign committee or agentnew text begin ; any local candidate, or any local candidate's agentnew text end .

Sec. 20.

Minnesota Statutes 2020, section 383B.041, is amended to read:


383B.041 CAMPAIGN FINANCING, DISCLOSURE OF ECONOMIC
INTERESTS.

new text begin Subdivision 1. new text end

new text begin Hennepin County candidates. new text end

deleted text begin Sections 383B.041 to 383B.058 apply
to the financing of campaigns for county elections in Hennepin County and for city elections
in home rule charter cities and statutory cities located wholly within Hennepin County,
having a population of 75,000 or more, and for school board elections in the Special School
District No. 1, Minneapolis, and to disclosure of economic interests by candidates and
elected public officials of those jurisdictions. The provisions of sections 211A.02 to 211A.07
do not apply to the financing of campaigns for elections subject to the provisions of sections
383B.041 to 383B.058.
deleted text end new text begin Candidates for county commissioner, county attorney, and sheriff
of Hennepin County must file campaign disclosure forms with the filing officer for Hennepin
County. These candidates are subject to the provisions of chapter 211A.
new text end

new text begin Subd. 2. new text end

new text begin Political subdivision candidates. new text end

new text begin Candidates for elected city, school board,
park commissioner, and other political subdivision offices within Hennepin County shall
file campaign disclosure forms with the filing officer for the political subdivision for which
the candidate is seeking office. These candidates are subject to the provisions of chapter
211A.
new text end

new text begin Subd. 3. new text end

new text begin Political committees, political funds, and independent expenditures. new text end

new text begin (a)
The provisions of chapter 10A apply to political committees as defined in section 10A.01,
subdivision 27; political funds as defined in section 10A.01, subdivision 28; and independent
expenditures as defined in section 10A.01, subdivision 18, related to:
new text end

new text begin (1) a campaign for the nomination or election of a candidate for:
new text end

new text begin (i) a county office in Hennepin County;
new text end

new text begin (ii) a city office in a home rule charter or statutory city located wholly within Hennepin
County with a population of 75,000 or more; or
new text end

new text begin (iii) the school board in Special School District No. 1; and
new text end

new text begin (2) a ballot question or proposition that may be voted on by:
new text end

new text begin (i) all voters in Hennepin County;
new text end

new text begin (ii) all voters of a home rule charter or statutory city located wholly within Hennepin
County and having a population of 75,000 or more; or
new text end

new text begin (iii) all voters in Special School District No. 1.
new text end

new text begin (b) The provisions of chapter 211A apply to a campaign for nomination or election for
an office in the following political subdivisions:
new text end

new text begin (1) a home rule or statutory city located wholly within Hennepin County and having a
population of less than 75,000; and
new text end

new text begin (2) a school district located wholly within Hennepin County other than Special School
District No. 1.
new text end

new text begin (c) The provisions of chapter 211A apply to a ballot question or proposition that may
be voted on by:
new text end

new text begin (1) all voters of a home rule or statutory city located wholly within Hennepin County
and having a population of less than 75,000; and
new text end

new text begin (2) all voters of a school district located wholly within Hennepin County other than
Special School District No. 1.
new text end

new text begin Subd. 4. new text end

new text begin Local ordinances and charters superseded. new text end

new text begin This section supersedes the
provisions of any ordinance or resolution of a political subdivision within Hennepin County,
or any existing special law or home rule charter provision of a political subdivision within
Hennepin County requiring disclosure of information related to the financing of election
campaigns.
new text end

new text begin Subd. 5. new text end

new text begin Economic interest disclosure; Special School District No. 1. new text end

new text begin Every candidate
for school board in Special School District No. 1, Minneapolis, must file an original statement
of economic interest with the school district within 14 days of the filing of an affidavit or
petition to appear on the ballot. An elected official in Special School District No. 1,
Minneapolis, must file the annual statement required in section 10A.09, subdivision 6, with
the school district for every year that the individual serves in office. An original and annual
statement must contain the information listed in section 10A.09, subdivision 5. The provisions
of section 10A.09, subdivisions 6a, 7, and 9, apply to statements required under this
subdivision.
new text end

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

new text begin Minnesota Statutes 2020, sections 10A.15, subdivision 6; 383B.042; 383B.043; 383B.044;
383B.045; 383B.046; 383B.047; 383B.048; 383B.049; 383B.05; 383B.051; 383B.052;
383B.053; 383B.054; 383B.055; 383B.056; and 383B.057,
new text end new text begin are repealed.
new text end

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

new text begin This act is effective January 1, 2022, and applies to reports and disclosures required to
be filed on or after that date.
new text end

APPENDIX

Repealed Minnesota Statutes: H0396-1

10A.15 CONTRIBUTIONS.

No active language found for: 10A.15.6

No active language found for: 383B.042

No active language found for: 383B.043

No active language found for: 383B.044

No active language found for: 383B.045

No active language found for: 383B.046

No active language found for: 383B.047

No active language found for: 383B.048

No active language found for: 383B.049

No active language found for: 383B.05

No active language found for: 383B.051

No active language found for: 383B.052

No active language found for: 383B.053

No active language found for: 383B.054

No active language found for: 383B.055

No active language found for: 383B.056

No active language found for: 383B.057