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; amending Minnesota Statutes 1999 Supplement, 
  1.6             sections 10A.01, subdivision 18; 10A.25, subdivision 
  1.7             1, and by adding a subdivision; 10A.28, subdivision 1; 
  1.8             10A.31, subdivisions 3 and 5; 10A.322; and 290.06, 
  1.9             subdivision 23. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.12  10A.01, subdivision 18, is amended to read: 
  1.13     Subd. 18.  [INDEPENDENT EXPENDITURE.] "Independent 
  1.14  expenditure" means an expenditure expressly advocating the 
  1.15  nomination, election, or defeat of a clearly identified 
  1.16  candidate, if the expenditure is made without the express or 
  1.17  implied consent, authorization, or cooperation of, and not in 
  1.18  concert with or at the request or suggestion of, any candidate 
  1.19  or any candidate's principal campaign committee or agent.  An 
  1.20  independent expenditure is not a contribution to that 
  1.21  candidate.  An expenditure by a political party or political 
  1.22  party unit in a race where the political party has a candidate 
  1.23  on the ballot is not an independent expenditure. 
  1.24     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  1.25  10A.25, subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [LIMITS ARE VOLUNTARY.] The expenditure 
  1.27  limits imposed by this section on a candidate apply only to a 
  2.1   candidate who has signed an agreement under section 10A.322 to 
  2.2   be bound by them as a condition of receiving a public subsidy 
  2.3   for the candidate's campaign.  The prohibition imposed by this 
  2.4   section on a political party applies only to a political party 
  2.5   that has signed an agreement under section 10A.322 to be bound 
  2.6   by it as a condition of receiving a public subsidy for the 
  2.7   party's activities. 
  2.8      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.9   10A.25, is amended by adding a subdivision to read: 
  2.10     Subd. 14.  [INDEPENDENT EXPENDITURES BY POLITICAL PARTIES.] 
  2.11  A political party or party unit must not make an independent 
  2.12  expenditure in a primary where the political party or one of its 
  2.13  party units has endorsed a candidate or in a general election 
  2.14  where the political party has a candidate on the ballot. 
  2.15     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  2.16  10A.28, subdivision 1, is amended to read: 
  2.17     Subdivision 1.  [EXCEEDING EXPENDITURE LIMITS.] (a) A 
  2.18  candidate subject to the expenditure limits in section 10A.25 
  2.19  who permits the candidate's principal campaign committee to make 
  2.20  expenditures or permits approved expenditures to be made on the 
  2.21  candidate's behalf in excess of the limits imposed by section 
  2.22  10A.25, as adjusted by section 10A.255, is subject to a civil 
  2.23  fine of up to four times the amount by which the expenditures 
  2.24  exceeded the limit. 
  2.25     (b) The chair of a political party or party unit subject to 
  2.26  the prohibition in section 10A.25 that makes expenditures in 
  2.27  violation of section 10A.25 is subject to a civil fine of up to 
  2.28  four times the amount of the expenditures. 
  2.29     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  2.30  10A.31, subdivision 3, is amended to read: 
  2.31     Subd. 3.  [FORM.] The commissioner of revenue must provide 
  2.32  on the first page of the income tax form and the renter and 
  2.33  homeowner property tax refund return a space for the individual 
  2.34  to indicate a wish to pay $5 ($10 if filing a joint return) from 
  2.35  the general fund of the state to finance election campaigns.  
  2.36  The form must also contain language prepared by the commissioner 
  3.1   that permits the individual to direct the state to pay the $5 
  3.2   (or $10 if filing a joint return) to:  (1) one of the major 
  3.3   political parties; (2) any minor political party that qualifies 
  3.4   under subdivision 3a; or (3) (2) all qualifying candidates as 
  3.5   provided by subdivision 7.  The renter and homeowner property 
  3.6   tax refund return must include instructions that the individual 
  3.7   filing the return may designate $5 on the return only if the 
  3.8   individual has not designated $5 on the income tax return. 
  3.9      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  3.10  10A.31, subdivision 5, is amended to read: 
  3.11     Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
  3.12  calendar year the money in the general account must be allocated 
  3.13  to candidates as follows: 
  3.14     (1) 21 percent for the offices of governor and lieutenant 
  3.15  governor together; 
  3.16     (2) 4.2 percent for the office of attorney general; 
  3.17     (3) 2.4 percent each for the offices of secretary of state 
  3.18  and state auditor; 
  3.19     (4) in each calendar year during the period in which state 
  3.20  senators serve a four-year term, 23-1/3 percent for the office 
  3.21  of state senator, and 46-2/3 percent for the office of state 
  3.22  representative; and 
  3.23     (5) in each calendar year during the period in which state 
  3.24  senators serve a two-year term, 35 percent each for the offices 
  3.25  of state senator and state representative. 
  3.26     (b)  [PARTY ACCOUNT.] In each calendar year the money in 
  3.27  each party account must be allocated as follows: 
  3.28     (1) 14 percent for the offices of governor and lieutenant 
  3.29  governor together; 
  3.30     (2) 2.8 percent for the office of attorney general; 
  3.31     (3) 1.6 percent each for the offices of secretary of state 
  3.32  and state auditor; 
  3.33     (4) in each calendar year during the period in which state 
  3.34  senators serve a four-year term, 23-1/3 percent for the office 
  3.35  of state senator, and 46-2/3 percent for the office of state 
  3.36  representative; 
  4.1      (5) in each calendar year during the period in which state 
  4.2   senators serve a two-year term, 35 percent each for the offices 
  4.3   of state senator and state representative; and 
  4.4      (6) ten percent for the state committee of a political 
  4.5   party that has signed and filed with the board a spending limit 
  4.6   agreement under section 10A.322. 
  4.7      Money allocated to each state committee under clause (6) 
  4.8   must be deposited in a separate account and must be spent for 
  4.9   only those items enumerated in section 10A.275.  Money allocated 
  4.10  to a state committee under clause (6) must be paid to the 
  4.11  committee by the board as it is received in the account on a 
  4.12  monthly basis, with payment on the 15th day of the calendar 
  4.13  month following the month in which the returns were processed by 
  4.14  the department of revenue, provided that these distributions 
  4.15  would be equal to 90 percent of the amount of money indicated in 
  4.16  the department of revenue's weekly unedited reports of income 
  4.17  tax returns and property tax refund returns processed in the 
  4.18  month, as notified by the department of revenue to the board.  
  4.19  The amounts paid to each state committee are subject to biennial 
  4.20  adjustment and settlement at the time of each certification 
  4.21  required of the commissioner of revenue under subdivisions 7 and 
  4.22  10.  If the total amount of payments received by a state 
  4.23  committee for the period reflected on a certification by the 
  4.24  department of revenue is different from the amount that should 
  4.25  have been received during the period according to the 
  4.26  certification, each subsequent monthly payment must be increased 
  4.27  or decreased to the fullest extent possible until the amount of 
  4.28  the overpayment is recovered or the underpayment is distributed. 
  4.29     Money not allocated to a state committee under clause (6) 
  4.30  because the state committee has not signed and filed with the 
  4.31  board a spending limit agreement under section 10A.322 must be 
  4.32  canceled to the general fund.  
  4.33     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
  4.34  10A.322, is amended to read: 
  4.35     10A.322 [SPENDING LIMIT AGREEMENTS.] 
  4.36     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
  5.1   condition of receiving a public subsidy, a candidate must sign 
  5.2   and file with the board a written agreement in which the 
  5.3   candidate agrees that the candidate will comply with sections 
  5.4   10A.25; 10A.27, subdivision 10; and 10A.324. 
  5.5      (b) Before the first day of filing for office, the board 
  5.6   must forward agreement forms to all filing officers.  The board 
  5.7   must also provide agreement forms to candidates on request at 
  5.8   any time.  The candidate must file the agreement with the board 
  5.9   by September August 1 preceding the candidate's general election 
  5.10  or a special election held at the general election.  An 
  5.11  agreement may not be filed after that date.  An agreement once 
  5.12  filed may not be rescinded. 
  5.13     (c) The board must notify the commissioner of revenue of 
  5.14  any agreement signed filed under this subdivision. 
  5.15     (d) Notwithstanding paragraph (b), if a vacancy occurs that 
  5.16  will be filled by means of a special election and the filing 
  5.17  period does not coincide with the filing period for the general 
  5.18  election, a candidate may sign and submit file a spending limit 
  5.19  agreement not later than the day after the candidate files the 
  5.20  affidavit of candidacy or nominating petition for the office. 
  5.21     Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] (e) The 
  5.22  agreement, insofar as it relates to the expenditure limits in 
  5.23  section 10A.25, as adjusted by section 10A.255, and the 
  5.24  contribution limit in section 10A.27, subdivision 10, remains 
  5.25  effective for candidates until the dissolution of the principal 
  5.26  campaign committee of the candidate or the end of the first 
  5.27  election cycle completed after the agreement was filed, 
  5.28  whichever occurs first. 
  5.29     Subd. 2a.  [AGREEMENT BY POLITICAL PARTY.] (a) As a 
  5.30  condition of receiving a public subsidy, the chair of the state 
  5.31  committee of a political party must sign and file with the board 
  5.32  a written agreement in which the state committee agrees that the 
  5.33  political party and all its party units will comply with section 
  5.34  10A.25.  An agreement once filed may not be rescinded.  
  5.35     (b) The board must provide agreement forms to political 
  5.36  parties on request at any time.  The state chair must file the 
  6.1   agreement with the board by February 1 in order to be allocated 
  6.2   money credited to the party account for the preceding taxable 
  6.3   year. 
  6.4      (c) The spending limit agreement remains in effect until 
  6.5   the end of the first general election cycle completed after the 
  6.6   agreement was filed or the dissolution of the political party, 
  6.7   whichever occurs first. 
  6.8      (d) The board must notify the commissioner of revenue of 
  6.9   any agreement filed under this subdivision. 
  6.10     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board must 
  6.11  make available to a political party on request and to any or 
  6.12  candidate for whom an agreement under this section is effective, 
  6.13  a supply of official refund receipt forms that state in boldface 
  6.14  type that (1) a contributor who is given a receipt form is 
  6.15  eligible to claim a refund as provided in section 290.06, 
  6.16  subdivision 23, and (2) if the contribution is to a candidate, 
  6.17  that the candidate or political party has signed an agreement to 
  6.18  limit campaign expenditures as provided in this section.  The 
  6.19  forms must provide duplicate copies of the receipt to be 
  6.20  attached to the contributor's claim.  A candidate who does not 
  6.21  sign an agreement under this section and who willfully issues an 
  6.22  official refund receipt form or a facsimile of one to any of the 
  6.23  candidate's contributors is guilty of a misdemeanor.  If the 
  6.24  state chair of a political party has not signed an agreement 
  6.25  under this section and the chair of a party unit willfully 
  6.26  issues an official refund receipt form or a facsimile of one to 
  6.27  any of the party's contributors, the chair of the party unit is 
  6.28  guilty of a misdemeanor. 
  6.29     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  6.30  290.06, subdivision 23, is amended to read: 
  6.31     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
  6.32  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
  6.33  amount of the taxpayer's contributions made in the calendar year 
  6.34  to candidates and to a political party.  The maximum refund for 
  6.35  an individual must not exceed $50 and for a married couple, 
  6.36  filing jointly, must not exceed $100.  A refund of a 
  7.1   contribution is allowed only if the taxpayer files a form 
  7.2   required by the commissioner and attaches to the form a copy of 
  7.3   an official refund receipt form issued by the candidate or party 
  7.4   and signed by the candidate, the treasurer of the candidate's 
  7.5   principal campaign committee, or the party chair, after the 
  7.6   contribution was received.  The receipt forms must be numbered, 
  7.7   and the data on the receipt that are not public must be made 
  7.8   available to the campaign finance and public disclosure board 
  7.9   upon its request.  A claim must be filed with the commissioner 
  7.10  no sooner than January 1 of the calendar year in which the 
  7.11  contribution was made and no later than April 15 of the calendar 
  7.12  year following the calendar year in which the contribution was 
  7.13  made.  A taxpayer may file only one claim per calendar year.  
  7.14  Amounts paid by the commissioner after June 15 of the calendar 
  7.15  year following the calendar year in which the contribution was 
  7.16  made must include interest at the rate specified in section 
  7.17  270.76. 
  7.18     (b) No refund is allowed under this subdivision for a 
  7.19  contribution to a candidate unless the candidate: 
  7.20     (1) has signed and filed an agreement to limit campaign 
  7.21  expenditures as provided in section 10A.322; 
  7.22     (2) is seeking an office for which voluntary spending 
  7.23  limits are specified in section 10A.25; and 
  7.24     (3) has designated a principal campaign committee.  
  7.25     This subdivision does not limit the campaign expenditures 
  7.26  of a candidate who does not sign an agreement but accepts a 
  7.27  contribution for which the contributor improperly claims a 
  7.28  refund. 
  7.29     No refund is allowed under this subdivision for a 
  7.30  contribution to a political party or party unit unless the state 
  7.31  chair of the political party has signed and filed an agreement 
  7.32  to limit campaign expenditures as provided in section 10A.322.  
  7.33     (c) For purposes of this subdivision, "political party" 
  7.34  means a major political party as defined in section 200.02, 
  7.35  subdivision 7, or a minor political party qualifying for 
  7.36  inclusion on the income tax or property tax refund form under 
  8.1   section 10A.31, subdivision 3a has the meaning given it in 
  8.2   section 10A.01, subdivision 29.  
  8.3      A "major party" or "minor party" includes the aggregate of 
  8.4   that party's organization within each house of the legislature, 
  8.5   the state party organization, and the party organization within 
  8.6   congressional districts, counties, legislative districts, 
  8.7   municipalities, and precincts. "Party unit" has the meaning 
  8.8   given it in section 10A.01, subdivision 30.  
  8.9      "Candidate" means a candidate as defined in section 10A.01, 
  8.10  subdivision 10, except a candidate for judicial office.  
  8.11     "Contribution" means a gift of money. 
  8.12     (d) The commissioner shall make copies of the form 
  8.13  available to the public and candidates upon request. 
  8.14     (e) The following data collected or maintained by the 
  8.15  commissioner under this subdivision are private:  the identities 
  8.16  of individuals claiming a refund, the identities of candidates 
  8.17  to whom those individuals have made contributions, and the 
  8.18  amount of each contribution.  
  8.19     (f) The commissioner shall report to the campaign finance 
  8.20  and public disclosure board by each August 1 a summary showing 
  8.21  the total number and aggregate amount of political contribution 
  8.22  refunds made on behalf of each candidate and each political 
  8.23  party.  These data are public. 
  8.24     (g) The amount necessary to pay claims for the refund 
  8.25  provided in this section is appropriated from the general fund 
  8.26  to the commissioner of revenue. 
  8.27     Sec. 9.  [EFFECTIVE DATE.] 
  8.28     This act is effective January 1, 2001.