1.1 	A bill for an act
1.2 	relating to elections; clarifying certain terminology;
1.3 	modifying certain restrictions on corporate spending
1.4 	in political campaigns; amending Minnesota Statutes
1.5 	2004, sections 10A.01, subdivisions 9, 11; 211B.15,
1.6 	subdivisions 1, 17.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

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

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

4.14 	Sec. 3. Minnesota Statutes 2004, section 211B.15,
4.15 	subdivision 1, is amended to read:
4.16 		Subdivision 1.Definitions. For purposes of (a) The
4.17 	definitions in this subdivision apply to this section,.
4.18 	(b) "Contribution" has the meaning given in section 10A.01,
4.19 	subdivision 11.
4.20 	(c) "Corporation" means:
4.21 	(1) a corporation organized for profit that does business
4.22 	in this state;
4.23 	(2) a nonprofit corporation that carries out activities in
4.24 	this state; or
4.25 	(3) a limited liability company formed under chapter 322B,
4.26 	or under similar laws of another state, that does business in
4.27 	this state.
4.28 	(d) "Expenditure" has the meaning given in section 10A.01,
4.29 	subdivision 9.
4.30 	(e) "Political office" means an elective office of the
4.31 	state or a political subdivision, but does not include the
4.32 	office of president of the United States or the office of
4.33 	senator or representative in Congress.

4.34 	Sec. 4. Minnesota Statutes 2004, section 211B.15,
4.35 	subdivision 17, is amended to read:
4.36 		Subd. 17.nonprofit corporation political
5.1 	activity administrative support.  It is not a violation of this
5.2 	section for a nonprofit corporation to provide administrative
5.3 	assistance to one political committee or political fund that is
5.4 	associated with the nonprofit corporation and registered with
5.5 	the Campaign Finance and Public Disclosure Board under section
5.6 	10A.14. Such Administrative assistance must be limited to 
5.7 	includes accounting, clerical or legal services, bank charges,
5.8 	utilities, office space, and supplies, and the expenses of
5.9 	soliciting donations to the political committee or political
5.10 	fund.  The records of the political committee or political fund
5.11 	may be kept on the premises of the nonprofit corporation.
5.12 	The administrative assistance provided by the nonprofit
5.13 	corporation to the political committee or political fund is
5.14 	limited annually to the lesser of $5,000 or 7-1/2 percent of the
5.15 	expenditures of the political committee or political fund.