1.1                          A bill for an act 
  1.2             relating to elections; imposing campaign contribution 
  1.3             and spending limits on political party caucuses that 
  1.4             choose to participate in the political contribution 
  1.5             refund program; limiting multicandidate expenditures 
  1.6             by political parties; increasing the maximum political 
  1.7             contribution refund from $50 to $100; amending 
  1.8             Minnesota Statutes 2000, sections 10A.25, subdivisions 
  1.9             1, 10, and by adding a subdivision; 10A.27, 
  1.10            subdivision 11, and by adding a subdivision; 10A.275, 
  1.11            subdivision 1; 10A.28, subdivisions 1 and 2; 10A.322; 
  1.12            and 290.06, subdivision 23. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 10A.25, 
  1.15  subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [LIMITS ARE VOLUNTARY.] The expenditure 
  1.17  limits imposed by this section on a candidate apply only to a 
  1.18  candidate who has signed an agreement under section 10A.322 to 
  1.19  be bound by them as a condition of receiving a public subsidy 
  1.20  for the candidate's campaign.  The expenditure limits imposed by 
  1.21  this section on a party caucus in a house of the legislature 
  1.22  apply only to a party caucus that has signed and filed an 
  1.23  agreement under section 10A.322 to be bound by them as a 
  1.24  condition of participation in the political contribution refund 
  1.25  program. 
  1.26     Sec. 2.  Minnesota Statutes 2000, section 10A.25, 
  1.27  subdivision 10, is amended to read: 
  1.28     Subd. 10.  [EFFECT OF OPPONENT'S CONDUCT.] (a) A candidate 
  1.29  who has agreed to be bound by the expenditure limits imposed by 
  2.1   this section as a condition of receiving a public subsidy for 
  2.2   the candidate's campaign is released from the expenditure limits 
  2.3   but remains eligible to receive a public subsidy if the 
  2.4   candidate has an opponent who does has not agree agreed to be 
  2.5   bound by the limits and receives has received contributions or 
  2.6   makes made or becomes become obligated to make expenditures 
  2.7   during that election cycle in excess of the following limits: 
  2.8      (1) up to ten days during the reporting period before the 
  2.9   primary election, receipts or expenditures equal to 20 percent 
  2.10  of the expenditure limit for that office as set forth in 
  2.11  subdivision 2; or 
  2.12     (2) after ten days before the primary election that 
  2.13  reporting period, cumulative receipts or expenditures during 
  2.14  that election cycle equal to 50 percent of the expenditure limit 
  2.15  for that office as set forth in subdivision 2. 
  2.16     (b) A candidate who has not agreed to be bound by 
  2.17  expenditure limits, or the candidate's principal campaign 
  2.18  committee, must file written notice with the board and provide 
  2.19  written notice to any opponent of the candidate for the same 
  2.20  office within 24 hours of exceeding the limits in paragraph (a), 
  2.21  clause (2).  The notice must state only that the candidate or 
  2.22  candidate's principal campaign committee has received 
  2.23  contributions or made or become obligated to make campaign 
  2.24  expenditures in excess of the limits in paragraph (a), clause 
  2.25  (2).  Upon receipt of the notice, the candidate who had agreed 
  2.26  to be bound by the limits is no longer bound by the expenditure 
  2.27  limits. 
  2.28     Sec. 3.  Minnesota Statutes 2000, section 10A.25, is 
  2.29  amended by adding a subdivision to read: 
  2.30     Subd. 14.  [LIMITS ON PARTY CAUCUSES.] (a) In a year in 
  2.31  which a general election is held for a house of the legislature, 
  2.32  the members of a party caucus in that house must not make 
  2.33  campaign expenditures that result in aggregate expenditures in 
  2.34  excess of $750,000. 
  2.35     (b) During an election cycle, in any year before the 
  2.36  general election year for a house of the legislature, the 
  3.1   members of a party caucus in that house must not make campaign 
  3.2   expenditures that exceed 20 percent of the general election year 
  3.3   limit. 
  3.4      (c) A party caucus in a house of the legislature that has 
  3.5   agreed to be bound by the expenditure limits imposed by this 
  3.6   subdivision as a condition of participating in the political 
  3.7   contribution refund program is released from the expenditure 
  3.8   limits but remains eligible to participate in the political 
  3.9   contribution refund program if another party caucus in the same 
  3.10  house of the legislature has not agreed to be bound by the 
  3.11  limits and has received contributions or made or become 
  3.12  obligated to make expenditures during that election cycle in 
  3.13  excess of 50 percent of the expenditure limit set forth in 
  3.14  paragraph (a). 
  3.15     (d) A party caucus in a house of the legislature that has 
  3.16  not agreed to be bound by the limits must file written notice 
  3.17  with the board and provide written notice to every other party 
  3.18  caucus in the same house of the legislature within 24 hours 
  3.19  after exceeding the limit in paragraph (c).  The notice must 
  3.20  state only that the party caucus has received contributions or 
  3.21  made or become obligated to make campaign expenditures in excess 
  3.22  of the limit in paragraph (c).  Upon receipt of the notice, the 
  3.23  party caucus that has agreed to be bound by the limits is no 
  3.24  longer bound by the expenditure limits but remains eligible to 
  3.25  participate in the political contribution refund program. 
  3.26     (e) If a party caucus in a house of the legislature is 
  3.27  released from expenditure limits under this subdivision, the 
  3.28  party caucus is also released from the limits on contributions 
  3.29  under section 10A.27, subdivision 14. 
  3.30     Sec. 4.  Minnesota Statutes 2000, section 10A.27, 
  3.31  subdivision 11, is amended to read: 
  3.32     Subd. 11.  [CONTRIBUTIONS FROM CERTAIN TYPES OF 
  3.33  CONTRIBUTORS.] A candidate must not permit the candidate's 
  3.34  principal campaign committee to accept a contribution from a 
  3.35  party caucus in a house of the legislature that has not filed a 
  3.36  spending limit agreement under section 10A.322, or from a 
  4.1   political committee, political fund, lobbyist, or large 
  4.2   contributor, if the contribution will cause the aggregate 
  4.3   contributions from those types of contributors to exceed an 
  4.4   amount equal to 20 percent of the expenditure limits for the 
  4.5   office sought by the candidate.  For purposes of this 
  4.6   subdivision, "large contributor" means an individual, other than 
  4.7   the candidate, who contributes an amount that is more than $100 
  4.8   and more than one-half the amount an individual may contribute. 
  4.9      Sec. 5.  Minnesota Statutes 2000, section 10A.27, is 
  4.10  amended by adding a subdivision to read: 
  4.11     Subd. 14.  [CONTRIBUTIONS TO PARTY CAUCUSES.] (a) The chair 
  4.12  of a party caucus within a house of the legislature that has 
  4.13  filed a spending limit agreement under section 10A.322 must not 
  4.14  permit the caucus to accept aggregate contributions from an 
  4.15  individual, political committee, political fund, or party unit 
  4.16  in an amount more than $500 in a year in which a general 
  4.17  election is held for that house or $100 in other years. 
  4.18     (b) The chair of a party caucus within a house of the 
  4.19  legislature that has filed a spending limit agreement under 
  4.20  section 10A.322 must not permit the caucus to accept a 
  4.21  contribution from a political committee, political fund, 
  4.22  lobbyist, or large contributor, if the contribution will cause 
  4.23  the aggregate contributions from those types of contributors to 
  4.24  exceed an amount equal to 20 percent of the expenditure limit.  
  4.25  For purposes of this subdivision, "large contributor" means an 
  4.26  individual who contributes more than $250. 
  4.27     Sec. 6.  Minnesota Statutes 2000, section 10A.275, 
  4.28  subdivision 1, is amended to read: 
  4.29     Subdivision 1.  [EXCEPTIONS.] Notwithstanding other 
  4.30  provisions of this chapter, the following expenditures by a 
  4.31  party unit, or two or more party units acting together, with at 
  4.32  least one party unit being either:  the state committee or the 
  4.33  party organization within a congressional district, county, or 
  4.34  legislative district, are not considered contributions to or 
  4.35  expenditures on behalf of a candidate for the purposes of 
  4.36  section 10A.25 or 10A.27 and must not be allocated to candidates 
  5.1   under section 10A.20, subdivision 3, paragraph (g): 
  5.2      (1) expenditures on behalf of candidates of that party 
  5.3   generally without referring to any of them specifically in a 
  5.4   published, posted, or broadcast advertisement; 
  5.5      (2) expenditures for the preparation, display, mailing, or 
  5.6   other distribution of an official party sample ballot listing 
  5.7   the names of three or more individuals whose names are to appear 
  5.8   on the ballot; or 
  5.9      (3) expenditures for a telephone conversation including 
  5.10  mentioning with roughly equal emphasis the names of three or 
  5.11  more individuals whose names are to appear on the ballot; 
  5.12     (4) expenditures for a political party fundraising effort 
  5.13  on behalf of three or more candidates; or 
  5.14     (5) expenditures for party committee staff services that 
  5.15  benefit three or more candidates.  
  5.16     Sec. 7.  Minnesota Statutes 2000, section 10A.28, 
  5.17  subdivision 1, is amended to read: 
  5.18     Subdivision 1.  [EXCEEDING EXPENDITURE LIMITS.] (a) A 
  5.19  candidate subject to the expenditure limits in section 10A.25 
  5.20  who permits the candidate's principal campaign committee to make 
  5.21  expenditures or permits approved expenditures to be made on the 
  5.22  candidate's behalf in excess of the limits imposed by section 
  5.23  10A.25, as adjusted by section 10A.255, is subject to a civil 
  5.24  fine of up to four times the amount by which the expenditures 
  5.25  exceeded the limit. 
  5.26     (b) The chair of a party caucus within a house of the 
  5.27  legislature subject to the expenditure limits in section 10A.25 
  5.28  who permits the caucus to make expenditures in excess of the 
  5.29  limits imposed by section 10A.25, as adjusted by section 
  5.30  10A.255, is subject to a civil fine of up to four times the 
  5.31  amount by which the expenditures exceeded the limit. 
  5.32     Sec. 8.  Minnesota Statutes 2000, section 10A.28, 
  5.33  subdivision 2, is amended to read: 
  5.34     Subd. 2.  [EXCEEDING CONTRIBUTION LIMITS.] A candidate who 
  5.35  permits the candidate's principal campaign committee to accept 
  5.36  contributions in excess of the limits imposed by section 10A.27 
  6.1   is subject to a civil fine of up to four times the amount by 
  6.2   which the contribution exceeded the limits.  The chair of a 
  6.3   party caucus within a house of the legislature who permits the 
  6.4   organization to accept contributions in excess of the limits 
  6.5   imposed by section 10A.27 is subject to a civil fine of up to 
  6.6   four times the amount by which the contribution exceeded the 
  6.7   limits. 
  6.8      Sec. 9.  Minnesota Statutes 2000, section 10A.322, is 
  6.9   amended to read: 
  6.10     10A.322 [SPENDING LIMIT AGREEMENTS.] 
  6.11     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
  6.12  condition of receiving a public subsidy, a candidate must sign 
  6.13  and file with the board a written agreement in which the 
  6.14  candidate agrees that the candidate will comply with sections 
  6.15  10A.25; 10A.27, subdivision 10; and 10A.324. 
  6.16     (b) Before the first day of filing for office, the board 
  6.17  must forward agreement forms to all filing officers.  The board 
  6.18  must also provide agreement forms to candidates on request at 
  6.19  any time.  The candidate must file the agreement with the board 
  6.20  by September 1 preceding the candidate's general election or a 
  6.21  special election held at the general election.  An agreement may 
  6.22  not be filed after that date.  An agreement once filed may not 
  6.23  be rescinded. 
  6.24     (c) The board must notify the commissioner of revenue of 
  6.25  any agreement signed filed under this subdivision. 
  6.26     (d) Notwithstanding paragraph (b), if a vacancy occurs that 
  6.27  will be filled by means of a special election and the filing 
  6.28  period does not coincide with the filing period for the general 
  6.29  election, a candidate may sign and submit file a spending limit 
  6.30  agreement not later than the day after the candidate files the 
  6.31  affidavit of candidacy or nominating petition for the office. 
  6.32     Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] (e) The 
  6.33  agreement, insofar as it relates to the expenditure limits in 
  6.34  section 10A.25, as adjusted by section 10A.255, and the 
  6.35  contribution limit in section 10A.27, subdivision 10, remains 
  6.36  effective for candidates until the dissolution of the principal 
  7.1   campaign committee of the candidate or the end of the first 
  7.2   election cycle completed after the agreement was filed, 
  7.3   whichever occurs first. 
  7.4      Subd. 2.  [AGREEMENT BY PARTY CAUCUS.] (a) As a condition 
  7.5   of participating in the political contribution refund program, 
  7.6   the chair of a party caucus in a house of the legislature must 
  7.7   sign and file with the board a written agreement in which the 
  7.8   caucus agrees that it will comply with sections 10A.25 and 
  7.9   10A.27, subdivision 14.  An agreement once filed may not be 
  7.10  rescinded. 
  7.11     (b) The board must provide agreement forms to legislative 
  7.12  party caucuses on request at any time.  The party caucus must 
  7.13  file the agreement with the board by September 1 preceding the 
  7.14  general election or a special election held at the general 
  7.15  election.  If a vacancy occurs that will be filled by means of a 
  7.16  special election and the filing period does not coincide with 
  7.17  the filing period for the general election, a legislative party 
  7.18  caucus may sign and file a spending limit agreement not later 
  7.19  than the day after the end of the filing period. 
  7.20     (c) The spending limit agreement remains in effect until 
  7.21  the end of the first election cycle completed after the 
  7.22  agreement was filed or the dissolution of the legislative party 
  7.23  caucus, whichever occurs first.  
  7.24     (d) The board must notify the commissioner of revenue of 
  7.25  any agreement filed under this subdivision. 
  7.26     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board must 
  7.27  make available to a political party, as defined in section 
  7.28  290.06, subdivision 23, on request and to any candidate for whom 
  7.29  an agreement under this section is effective, a supply of 
  7.30  official refund receipt forms that state in boldface type that 
  7.31  (1) a contributor who is given a receipt form is eligible to 
  7.32  claim a refund as provided in section 290.06, subdivision 23, 
  7.33  and (2) if the contribution is to a candidate or legislative 
  7.34  party caucus, that the candidate or legislative party caucus has 
  7.35  signed an agreement to limit campaign expenditures as provided 
  7.36  in this section.  The forms must provide duplicate copies of the 
  8.1   receipt to be attached to the contributor's claim.  A candidate 
  8.2   who does not sign an agreement under this section and who 
  8.3   willfully issues an official refund receipt form or a facsimile 
  8.4   of one to any of the candidate's contributors is guilty of a 
  8.5   misdemeanor.  If the chair of a legislative party caucus has not 
  8.6   assigned an agreement under this section and the caucus chair 
  8.7   willfully issues an official refund receipt form or a facsimile 
  8.8   of one to any of the caucus' contributors, the caucus chair is 
  8.9   guilty of a misdemeanor. 
  8.10     Sec. 10.  Minnesota Statutes 2000, section 290.06, 
  8.11  subdivision 23, is amended to read: 
  8.12     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
  8.13  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
  8.14  amount of the taxpayer's contributions made in the calendar year 
  8.15  to candidates and to a political party.  The maximum refund for 
  8.16  an individual must not exceed $50 $100 and for a married couple, 
  8.17  filing jointly, must not exceed $100 $200.  A refund of a 
  8.18  contribution is allowed only if the taxpayer files a form 
  8.19  required by the commissioner and attaches to the form a copy of 
  8.20  an official refund receipt form issued by the candidate or party 
  8.21  and signed by the candidate, the treasurer of the candidate's 
  8.22  principal campaign committee, or the chair or treasurer of the 
  8.23  party unit, after the contribution was received.  The receipt 
  8.24  forms must be numbered, and the data on the receipt that are not 
  8.25  public must be made available to the campaign finance and public 
  8.26  disclosure board upon its request.  A claim must be filed with 
  8.27  the commissioner no sooner than January 1 of the calendar year 
  8.28  in which the contribution was made and no later than April 15 of 
  8.29  the calendar year following the calendar year in which the 
  8.30  contribution was made.  A taxpayer may file only one claim per 
  8.31  calendar year.  Amounts paid by the commissioner after June 15 
  8.32  of the calendar year following the calendar year in which the 
  8.33  contribution was made must include interest at the rate 
  8.34  specified in section 270.76. 
  8.35     (b) No refund is allowed under this subdivision for a 
  8.36  contribution to a candidate unless the candidate: 
  9.1      (1) has signed an agreement to limit campaign expenditures 
  9.2   as provided in section 10A.322; 
  9.3      (2) is seeking an office for which voluntary spending 
  9.4   limits are specified in section 10A.25; and 
  9.5      (3) has designated a principal campaign committee.  
  9.6      This subdivision does not limit the campaign expenditures 
  9.7   of a candidate who does not sign an agreement but accepts a 
  9.8   contribution for which the contributor improperly claims a 
  9.9   refund.  
  9.10     (c) For purposes of this subdivision, "political party" 
  9.11  means a major political party as defined in section 200.02, 
  9.12  subdivision 7, or a minor political party qualifying for 
  9.13  inclusion on the income tax or property tax refund form under 
  9.14  section 10A.31, subdivision 3a.  
  9.15     A "major party" or "minor party" includes the aggregate of 
  9.16  that party's organization within each house of the 
  9.17  legislature that has filed with the board a spending limit 
  9.18  agreement under section 10A.322, the state party organization, 
  9.19  and the party organization within congressional districts, 
  9.20  counties, legislative districts, municipalities, and precincts.  
  9.21     "Candidate" means a candidate as defined in section 10A.01, 
  9.22  subdivision 10, except a candidate for judicial office.  
  9.23     "Contribution" means a gift of money. 
  9.24     (d) The commissioner shall make copies of the form 
  9.25  available to the public and candidates upon request. 
  9.26     (e) The following data collected or maintained by the 
  9.27  commissioner under this subdivision are private:  the identities 
  9.28  of individuals claiming a refund, the identities of candidates 
  9.29  to whom those individuals have made contributions, and the 
  9.30  amount of each contribution.  
  9.31     (f) The commissioner shall report to the campaign finance 
  9.32  and public disclosure board by each August 1 a summary showing 
  9.33  the total number and aggregate amount of political contribution 
  9.34  refunds made on behalf of each candidate and each political 
  9.35  party.  These data are public. 
  9.36     (g) The amount necessary to pay claims for the refund 
 10.1   provided in this section is appropriated from the general fund 
 10.2   to the commissioner of revenue. 
 10.3      Sec. 11.  [EFFECTIVE DATE.] 
 10.4      This act is effective January 1, 2002, and applies to 
 10.5   contributions received and expenditures made on and after that 
 10.6   date.