1.1 	A bill for an act
1.2 	relating to campaign finance; changing certain
1.3 	reporting requirements; redefining inactivity;
1.4 	requiring assumption of certain liabilities; changing
1.5 	certain limits; changing public subsidy distribution
1.6 	requirements; changing certain definitions,
1.7 	procedures, and requirements; amending Minnesota
1.8 	Statutes 2004, sections 10A.01, subdivisions 9, 11;
1.9 	10A.20, subdivisions 2, 5, by adding a subdivision;
1.10 	10A.24, subdivision 2; 10A.242, subdivision 2; 10A.25,
1.11 	subdivision 2; 10A.31, subdivisions 6, 7; 10A.323;
1.12 	211B.15, subdivisions 1, 17.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2004, section 10A.01,
1.15 	subdivision 9, is amended to read:
1.16 		Subd. 9.Campaign expenditure. (a) "Campaign
1.17 	expenditure" or "expenditure" means a purchase or payment of
1.18 	money or anything of value, or an advance of credit, made or
1.19 	incurred for the purpose of influencing the nomination or
1.20 	election of a candidate or for the purpose of promoting or
1.21 	defeating a ballot question.
1.22 	(b) An expenditure is considered to be made in the year in
1.23 	which the candidate made the purchase of goods or services or
1.24 	incurred an obligation to pay for goods or services.
1.25 	(c) An expenditure made for the purpose of defeating a
1.26 	candidate is considered made for the purpose of influencing the
1.27 	nomination or election of that candidate or any opponent of that
1.28 	candidate.
1.29 	(d) Except as provided in clause (1), "expenditure"
2.1 	includes the dollar value of a donation in kind.
2.2 	"Expenditure" does not include:
2.3 	(1) noncampaign disbursements as defined in subdivision 26;
2.4 	(2) services provided without compensation by an individual
2.5 	volunteering personal time on behalf of a candidate, ballot
2.6 	question, political committee, political fund, principal
2.7 	campaign committee, or party unit; or 
2.8 	(3) the publishing or broadcasting of news items or
2.9 	editorial comments by the news media; or 
2.10 	(4) the cost of a communication on any subject by a
2.11 	corporation intended for its shareholders or executive or
2.12 	administrative personnel, by a membership association intended
2.13 	for its members or the members' executive or administrative
2.14 	personnel, or by a labor organization intended for its members
2.15 	or executive or administrative personnel or their families.
2.16 	(e) For purposes of this subdivision and subdivision 11,
2.17 	the following terms have the meanings given them.
2.18 	(1) "Executive or administrative personnel" means
2.19 	individuals employed by a corporation, membership association,
2.20 	or labor organization who are paid on a salary rather than an
2.21 	hourly basis and who have policymaking, managerial,
2.22 	professional, or supervisory responsibilities.
2.23 	(2) "Labor organization" means any organization of any
2.24 	kind, or any agency or employee representative committee or
2.25 	plan, in which employees participate and that exists for the
2.26 	purpose, in whole or in part, of dealing with employers
2.27 	concerning grievances, labor disputes, wages, rates of pay,
2.28 	hours of employment, or conditions of work.
2.29 	(3) "Members" means all persons who are currently
2.30 	satisfying the requirements for membership in a membership
2.31 	association, affirmatively accept the membership association's
2.32 	invitation to become a member, and either:
2.33 	(i) have some significant financial attachment to the
2.34 	membership association, such as a significant investment or
2.35 	ownership state, but not merely the payment of dues;
2.36 	(ii) are required to pay on a regular basis a specific
3.1 	amount of dues that is predetermined by the association and are
3.2 	entitled to vote directly either for at least one member who has
3.3 	full participatory and voting rights on the highest governing
3.4 	body of the membership association, or for those who select at
3.5 	least one member of those on the highest governing body of the
3.6 	membership association; or 
3.7 	(iii) are entitled to vote directly for all of those on the
3.8 	highest governing body of the membership association.
3.9 	(4) "Membership association" means a membership
3.10 	organization; trade association; cooperative; corporation
3.11 	without capital shares; or local, national, or international
3.12 	labor organization that expressly:
3.13 	(i) provides for members in its articles and bylaws;
3.14 	(ii) solicits members; and 
3.15 	(iii) acknowledges the acceptance of membership, such as by
3.16 	sending a membership card or inclusion on a membership
3.17 	newsletter list.
3.18 	(5) "Shareholder" means a person who has a vested
3.19 	beneficial interest in one or more shares, has the power to
3.20 	direct how those shares are voted if they are voting shares, and
3.21 	has the right to receive dividends.

3.22 	Sec. 2. Minnesota Statutes 2004, section 10A.01,
3.23 	subdivision 11, is amended to read:
3.24 		Subd. 11.Contribution.  (a) "Contribution" means money,
3.25 	a negotiable instrument, or a donation in kind that is given to
3.26 	a political committee, political fund, principal campaign
3.27 	committee, or party unit.
3.28 	(b) "Contribution" includes a loan or advance of credit to
3.29 	a political committee, political fund, principal campaign
3.30 	committee, or party unit, if the loan or advance of credit is:
3.31 	(1) forgiven; or (2) repaid by an individual or an association
3.32 	other than the political committee, political fund, principal
3.33 	campaign committee, or party unit to which the loan or advance
3.34 	of credit was made.  If an advance of credit or a loan is
3.35 	forgiven or repaid as provided in this paragraph, it is a
3.36 	contribution in the year in which the loan or advance of credit
4.1 	was made.
4.2 	(c) "Contribution" does not include services provided
4.3 	without compensation by an individual volunteering personal time
4.4 	on behalf of a candidate, ballot question, political committee,
4.5 	political fund, principal campaign committee, or party unit, or
4.6 	the publishing or broadcasting of news items or editorial
4.7 	comments by the news media.
4.8 	(d) "Contribution" does not include the cost of a
4.9 	communication on any subject by a corporation intended for its
4.10 	shareholders or executive or administrative personnel, by a
4.11 	membership association intended for its members or the members'
4.12 	executive or administrative personnel, or by a labor
4.13 	organization intended for its members or executive or
4.14 	administrative personnel or their families, as defined in
4.15 	subdivision 9.

4.16 	Sec. 3. Minnesota Statutes 2004, section 10A.20, is
4.17 	amended by adding a subdivision to read:
4.18 		Subd. 1b.Electronic filing. A political party unit,
4.19 	political committee, or political fund that has raised or spent
4.20 	more than $15,000 must file the periodical reports required by
4.21 	this section electronically.  An electronically filed report
4.22 	generated by software other than that provided by the board must
4.23 	have its receipts and expenditure data in a format specified by
4.24 	the board.

4.25 	Sec. 4. Minnesota Statutes 2004, section 10A.20,
4.26 	subdivision 2, is amended to read:
4.27 		Subd. 2.Time for filing.  (a) The reports must be filed
4.28 	with the board on or before January 31 of each year and
4.29 	additional reports must be filed as required and in accordance
4.30 	with paragraphs (b) and (c).
4.31 	(b) In each year in which the name of the candidate is on
4.32 	the ballot, the report of the principal campaign committee must
4.33 	be filed 15 days before a primary and ten days before a general
4.34 	election in which the candidate's name appears on the ballot,
4.35 	seven days before a special primary and a special election in
4.36 	which the candidate's name appears on the ballot, and ten days
5.1 	after a special election cycle.
5.2 	(c) In each general election year, a political committee,
5.3 	political fund, or party unit must file reports 15 days before a
5.4 	primary and ten days before a general election.

5.5 	Sec. 5. Minnesota Statutes 2004, section 10A.20,
5.6 	subdivision 5, is amended to read:
5.7 		Subd. 5.Preelection reports. In a statewide election 
5.8 	Any loan, contribution, or contributions from any one source
5.9 	totaling $2,000 or more $1,500 or more to a candidate for
5.10 	governor or supreme court justice, $750 or more to a candidate
5.11 	for attorney general or appeals court judge, or $400 or more for
5.12 	a candidate for secretary of state, state auditor, or in any
5.13 	judicial district judge,or legislative election totaling more
5.14 	than $400 state legislator, received between the last day
5.15 	covered in the last report before an election and the election
5.16 	must be reported to the board in one of the following ways:
5.17 	(1) in person within 48 hours after its receipt;
5.18 	(2) by telegram or mailgram within 48 hours after its
5.19 	receipt; or
5.20 	(3) by certified mail sent within 48 hours after its
5.21 	receipt.
5.22 	These loans and contributions must also be reported in the
5.23 	next required report.
5.24 	The 48-hour notice requirement does not apply with respect
5.25 	to a primary in which the statewide or legislative candidate is
5.26 	unopposed.

5.27 	Sec. 6. Minnesota Statutes 2004, section 10A.24,
5.28 	subdivision 2, is amended to read:
5.29 		Subd. 2.Termination allowed.  Notwithstanding
5.30 	subdivision 1, a committee, fund, or party unit that has debts
5.31 	incurred more than six years previously, has disposed of all its
5.32 	assets, and has met the requirements of section 10A.20,
5.33 	subdivision 7, may notify any remaining creditors by certified
5.34 	mail and then file a termination report.
5.35 	A candidate who terminates a committee and within four
5.36 	years registers a new committee for the same office must assume
6.1 	any unpaid liabilities of the previous committee and
6.2 	continuously report the obligations until they are paid or
6.3 	forgiven.

6.4 	Sec. 7. Minnesota Statutes 2004, section 10A.242,
6.5 	subdivision 2, is amended to read:
6.6 		Subd. 2.Inactivity defined.  (a) A principal campaign
6.7 	committee becomes inactive on the later of the following dates:
6.8 	(1) when six four years or in the case of candidates for
6.9 	judicial offices, six years,have elapsed since the last
6.10 	election in which the person was a candidate for the office
6.11 	sought or held at the time the principal campaign committee
6.12 	registered with the board; or
6.13 	(2) when six four years or in the case of candidates for
6.14 	judicial offices, six years,have elapsed since the last day on
6.15 	which the individual for whom it exists served in an elective
6.16 	office subject to this chapter.
6.17 	(b) A political committee or fund becomes inactive when two
6.18 	years have elapsed since the end of a reporting period during
6.19 	which the political committee or fund made an expenditure or
6.20 	disbursement requiring disclosure under this chapter.

6.21 	Sec. 8. Minnesota Statutes 2004, section 10A.25,
6.22 	subdivision 2, is amended to read:
6.23 		Subd. 2.Amounts.  (a) In a year in which an election is
6.24 	held for an office sought by a candidate, the principal campaign
6.25 	committee of the candidate must not make campaign
6.26 	expenditures nor or permit approved expenditures to be made on
6.27 	behalf of the candidate that result in aggregate expenditures in
6.28 	excess of the following:
6.29 	(1) for governor and lieutenant governor, running together,
6.30 	$2,188,090;
6.31 	(2) for attorney general, $364,690;
6.32 	(3) for secretary of state and state auditor, separately,
6.33 	$182,350;
6.34 	(4) for state senator, $54,740; or 
6.35 	(5) for state representative, $28,400.
6.36 	(b) In addition to the amount in paragraph (a), clause (1),
7.1 	a candidate for endorsement for the office of lieutenant
7.2 	governor at the convention of a political party may make
7.3 	campaign expenditures and approved expenditures of five percent
7.4 	of that amount to seek endorsement.
7.5 	(c) If a special election cycle occurs during a general
7.6 	election cycle, expenditures by or on behalf of a candidate in
7.7 	the special election do not count as expenditures by or on
7.8 	behalf of the candidate in the general election.
7.9 	(d) The expenditure limits in this subdivision for an
7.10 	office are increased by ten percent for a candidate who is
7.11 	running for that office for the first time and who has not,
7.12 	during the previous ten years,run previously for any other
7.13 	office whose territory now includes a population that is more
7.14 	than one-third of the population in the territory of the new
7.15 	office.

7.16 	Sec. 9. Minnesota Statutes 2004, section 10A.31,
7.17 	subdivision 6, is amended to read:
7.18 		Subd. 6.Distribution of party accounts.  As soon as the
7.19 	board has obtained from the secretary of state the results of
7.20 	the primary election, but no later than one week after
7.21 	certification by the State Canvassing Board of the results of
7.22 	the primary, the board must distribute the available money in
7.23 	each party account, as certified by the commissioner of revenue
7.24 	on September 1, to the candidates of that party who have signed
7.25 	a spending limit agreement under section 10A.322, filed the
7.26 	preprimary report of receipts and expenditures required by
7.27 	section 10A.20,and filed the affidavit of contributions
7.28 	required by section 10A.323, who were opposed in either the
7.29 	primary election or the general election, and whose names are to
7.30 	appear on the ballot in the general election, according to the
7.31 	allocations set forth in subdivisions 5 and 5a.  The public
7.32 	subsidy from the party account may not be paid in an amount
7.33 	greater than the expenditure limit of the candidate or the
7.34 	expenditure limit that would have applied to the candidate if
7.35 	the candidate had not been freed from expenditure limits under
7.36 	section 10A.25, subdivision 10. If a candidate files the
8.1 	affidavit required by section 10A.323 after September 1 of the
8.2 	general election year, the board must pay the candidate's
8.3 	allocation to the candidate at the next regular payment date for
8.4 	public subsidies for that election cycle that occurs at least 15
8.5 	days after the candidate files the affidavit.

8.6 	Sec. 10. Minnesota Statutes 2004, section 10A.31,
8.7 	subdivision 7, is amended to read:
8.8 		Subd. 7.Distribution of general account.  (a) As soon as
8.9 	the board has obtained the results of the primary election from
8.10 	the secretary of state, but no later than one week after
8.11 	certification of the primary results by the State Canvassing
8.12 	Board, the board must distribute the available money in the
8.13 	general account, as certified by the commissioner of revenue on
8.14 	September 1 and according to allocations set forth in
8.15 	subdivision 5, in equal amounts to all candidates of a major
8.16 	political party whose names are to appear on the ballot in the
8.17 	general election and who:
8.18 	(1) have signed a spending limit agreement under section
8.19 	10A.322;
8.20 	(2) have filed the preprimary report of receipts and
8.21 	expenditures required by section 10A.20;
8.22 	(3) have filed the affidavit of contributions required by
8.23 	section 10A.323; and
8.24 	(3) (4) were opposed in either the primary election or the
8.25 	general election.
8.26 	(b) The public subsidy under this subdivision may not be
8.27 	paid in an amount that would cause the sum of the public subsidy
8.28 	paid from the party account plus the public subsidy paid from
8.29 	the general account to exceed 50 percent of the expenditure
8.30 	limit for the candidate or 50 percent of the expenditure limit
8.31 	that would have applied to the candidate if the candidate had
8.32 	not been freed from expenditure limits under section 10A.25,
8.33 	subdivision 10.  Money from the general account not paid to a
8.34 	candidate because of the 50 percent limit must be distributed
8.35 	equally among all other qualifying candidates for the same
8.36 	office until all have reached the 50 percent limit or the
9.1 	balance in the general account is exhausted.
9.2 	(c) A candidate must expend or become obligated to expend
9.3 	at least an amount equal to 50 percent of the money distributed
9.4 	by the board under this subdivision no later than the end of the
9.5 	final reporting period preceding the general election.
9.6 	Otherwise, the candidate must repay to the board the difference
9.7 	between the amount the candidate spent or became obligated to
9.8 	spend by the deadline and the amount distributed to the
9.9 	candidate under this subdivision.  The candidate must make the
9.10 	repayment no later than six months following the general
9.11 	election.  The candidate must reimburse the board for all
9.12 	reasonable costs, including litigation costs, incurred in
9.13 	collecting any amount due.
9.14 	If the board determines that a candidate has failed to
9.15 	repay money as required by this paragraph, the board may not
9.16 	distribute any additional money to the candidate until the
9.17 	entirety of the repayment has been made.

9.18 	Sec. 11. Minnesota Statutes 2004, section 10A.323, is
9.19 	amended to read:
9.20 	10A.323 AFFIDAVIT OF CONTRIBUTIONS.
9.21 	In addition to the requirements of section 10A.322, to be
9.22 	eligible to receive a public subsidy under section 10A.31 a
9.23 	candidate or the candidate's treasurer must file an a signed and
9.24 	notarized affidavit with the board stating that during that
9.25 	calendar year the candidate has accumulated contributions from
9.26 	persons eligible to vote in this state in at least the amount
9.27 	indicated for the office sought, counting only the first $50
9.28 	received from each contributor:
9.29 	(1) candidates for governor and lieutenant governor running
9.30 	together, $35,000;
9.31 	(2) candidates for attorney general, $15,000;
9.32 	(3) candidates for secretary of state and state auditor,
9.33 	separately, $6,000;
9.34 	(4) candidates for the senate, $3,000; and
9.35 	(5) candidates for the house of representatives, $1,500.
9.36 	The affidavit must state the total amount of contributions
10.1 	that have been received from persons eligible to vote in this
10.2 	state, disregarding the portion of any contribution in excess of
10.3 	$50.
10.4 	The candidate or the candidate's treasurer must submit the
10.5 	affidavit required by this section to the board in writing by
10.6 	September 1 of the date the preprimary report of receipts and
10.7 	expenditures is required to be filed under section 10A.20,
10.8 	subdivision 2, in the general election year.
10.9 	A candidate for a vacancy to be filled at a special
10.10 	election for which the filing period does not coincide with the
10.11 	filing period for the general election must submit the affidavit
10.12 	required by this section to the board within five days after
10.13 	filing the affidavit of candidacy. For purposes of this
10.14 	section, a candidate in a special election for the house of
10.15 	representatives must raise at least $500 and a candidate in a
10.16 	special election for the senate must raise at least $1,000.

10.17 	Sec. 12. Minnesota Statutes 2004, section 211B.15,
10.18 	subdivision 1, is amended to read:
10.19 		Subdivision 1.Definitions. For purposes of (a) The
10.20 	definitions in this subdivision apply to this section,.
10.21 	(b) "Contribution" has the meaning given in section 10A.01,
10.22 	subdivision 11.
10.23 	(c) "Corporation" means:
10.24 	(1) a corporation organized for profit that does business
10.25 	in this state;
10.26 	(2) a nonprofit corporation that carries out activities in
10.27 	this state; or
10.28 	(3) a limited liability company formed under chapter 322B,
10.29 	or under similar laws of another state, that does business in
10.30 	this state.
10.31 	(d) "Expenditure" has the meaning given in section 10A.01,
10.32 	subdivision 9.
10.33 	(e) "Political office" means an elective office of the
10.34 	state or a political subdivision, but does not include the
10.35 	office of president of the United States or the office of
10.36 	senator or representative in Congress.

11.1 	Sec. 13. Minnesota Statutes 2004, section 211B.15,
11.2 	subdivision 17, is amended to read:
11.3 		Subd. 17.nonprofit corporation political
11.4 	activity administrative support.  It is not a violation of this
11.5 	section for a nonprofit corporation to provide administrative
11.6 	assistance to one political committee or political fund that is
11.7 	associated with the nonprofit corporation and registered with
11.8 	the Campaign Finance and Public Disclosure Board under section
11.9 	10A.14. Such Administrative assistance must be limited to 
11.10 	includes accounting, clerical or legal services, bank charges,
11.11 	utilities, office space, and supplies, and the expenses of
11.12 	soliciting donations to the political committee or political
11.13 	fund.  The records of the political committee or political fund
11.14 	may be kept on the premises of the nonprofit corporation.
11.15 	The administrative assistance provided by the nonprofit
11.16 	corporation to the political committee or political fund is
11.17 	limited annually to the lesser of $5,000 or 7-1/2 percent of the
11.18 	expenditures of the political committee or political fund.