SF 489

1st Engrossment - 84th Legislature (2005 - 2006)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to elections; prohibiting political parties
that receive a public subsidy from making independent
expenditures; expanding the definitions of campaign
expenditures and independent expenditures; limiting
multicandidate expenditures by political parties;
amending Minnesota Statutes 2004, sections 10A.01,
subdivisions 9, 18; 10A.25, subdivision 1, by adding a
subdivision; 10A.275, subdivision 1; 10A.28,
subdivision 1; 10A.322.

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

Section 1.

Minnesota Statutes 2004, section 10A.01,
subdivision 9, is amended to read:

Subd. 9.

Campaign expenditure.

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

new text begin (b) "Expenditure" includes a cost incurred to design,
produce, or disseminate a communication if the communication
contains words such as "vote for," "reelect," "(name of
candidate) for (office)," "vote against," "defeat," or another
phrase or campaign slogan that in context can have no reasonable
meaning other than to advocate support for or opposition to the
nomination or election of one or more clearly identified
candidates.
new text end

new text begin (c) "Expenditure" is presumed to include a cost incurred to
design, produce, or disseminate a communication if the
communication names or depicts one or more clearly identified
candidates; is disseminated during the 45 days before a primary
election, during the 60 days before a general election, or
during a special election cycle until election day; and the cost
exceeds the following amounts for a communication naming or
depicting a candidate for the following offices:
new text end

new text begin (1) $500 for a candidate for governor, lieutenant governor,
attorney general, secretary of state, or state auditor; or
new text end

new text begin (2) $100 for a candidate for state senator or
representative.
new text end

new text begin An individual or association presumed under this paragraph
to have made an expenditure may rebut the presumption by an
affidavit signed by the spender and filed with the board stating
that the cost was not incurred with intent to influence the
nomination, election, or defeat of any candidate, supported by
any additional evidence the spender chooses to submit. The
board may consider any additional evidence it deems relevant and
material and must determine by a preponderance of the evidence
whether the cost was incurred with intent to influence the
nomination, election, or defeat of a candidate.
new text end

new text begin (d) new text end 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.

new text begin (e) new text end An expenditure made for the purpose of defeating a
candidate is considered made for the purpose of influencing the
nomination or election of that candidate or any opponent of that
candidate.

new text begin (f) new 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 candidate, ballot
question, political committee, political fund, principal
campaign committee, or party unit; deleted text begin or
deleted text end

(3) the publishing or broadcasting of news items or
editorial comments by the news media new text begin , if the news medium is not
owned by or affiliated with any candidate or principal campaign
committee; or
new text end

new text begin (4) a cost incurred by an association for a communication
targeted to inform solely its own dues-paying members of the
association's position on a candidate new text end .

Sec. 2.

Minnesota Statutes 2004, section 10A.01,
subdivision 18, is amended to read:

Subd. 18.

Independent expenditure.

new text begin (a) new text end "Independent
expenditure" means an expenditure deleted text begin expressly advocating the
election or defeat of a clearly identified candidate, if the
expenditure deleted text end new text begin that new text end 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 agent. An independent
expenditure is not a contribution to that candidate. deleted text begin An
expenditure by a political party or political party unit in a
race where the political party has a candidate on the ballot is
not an independent expenditure.
deleted text end

new text begin (b) An expenditure is presumed to be not independent if,
for example:
new text end

new text begin (1) in the same election cycle in which the expenditure
occurs, the spender or the spender's agent retains the
professional services of an individual or entity that, in a
nonministerial capacity, provides or has provided
campaign-related service, including polling or other campaign
research, media consulting or production, direct mail, or
fundraising, to a candidate supported by the spender for
nomination or election to the same office as any candidate whose
nomination or election the expenditure is intended to influence
or to a political party working in coordination with the
supported candidate;
new text end

new text begin (2) the expenditure pays for a communication that
disseminates, in whole or in substantial part, a broadcast or
written, graphic, or other form of campaign material designed,
produced, or distributed by the candidate or the candidate's
principal campaign committee or their agents;
new text end

new text begin (3) the expenditure is based on information about the
candidate's electoral campaign plans, projects, or needs that is
provided by the candidate or the candidate's principal campaign
committee or their agents directly or indirectly to the spender
or the spender's agent, with an express or tacit understanding
that the spender is considering making the expenditure;
new text end

new text begin (4) before the election, the spender or the spender's agent
informs a candidate or the principal campaign committee or agent
of a candidate for the same office as a candidate clearly
identified in a communication paid for by the expenditure about
the communication's contents; timing, location, mode, or
frequency of dissemination; or intended audience; or
new text end

new text begin (5) in the same election cycle in which the expenditure
occurs, the spender or the spender's agent is serving or has
served in an executive, policymaking, fundraising, or advisory
position with the candidate's campaign or has participated in
strategic or policymaking discussions with the candidate's
campaign relating to the candidate's pursuit of nomination or
election to office and the candidate is pursuing the same office
as a candidate whose nomination or election the expenditure is
intended to influence.
new text end

new text begin An individual or association presumed under this paragraph
to have made an expenditure that was not independent may rebut
the presumption by an affidavit signed by the spender and filed
with the board stating that the expenditure was 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 candidate's principal campaign committee or agent,
supported by additional evidence the spender chooses to submit.
The board may consider any additional evidence it deems relevant
and material and must determine by a preponderance of the
evidence whether the expenditure was independent.
new text end

new text begin (c) An expenditure by anyone other than a principal
campaign committee that does not qualify as an independent
expenditure under this subdivision is deemed to be an approved
expenditure under subdivision 4.
new text end

Sec. 3.

Minnesota Statutes 2004, section 10A.25,
subdivision 1, is amended to read:

Subdivision 1.

Limits are voluntary.

The expenditure
limits imposed by this section new text begin on a candidate new text end apply only to a
candidate who has signed new text begin and filed new text end an agreement under section
10A.322 to be bound by them as a condition of receiving a public
subsidy for the candidate's campaign. new text begin The prohibition on
independent expenditures imposed by subdivision 14 applies only
to a political party that has signed an agreement under section
10A.322 to be bound by it as a condition of receiving a public
subsidy for the party's activities.
new text end

Sec. 4.

Minnesota Statutes 2004, section 10A.25, is
amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Independent expenditures by political parties.
new text end

new text begin (a) A political party that receives a public subsidy must not
make an independent expenditure.
new text end

new text begin (b) A political party that has agreed not to make
independent expenditures as a condition of receiving a public
subsidy is released from the prohibition but remains eligible to
receive a public subsidy if a political party that has not
agreed to the prohibition makes an independent expenditure
during that election cycle.
new text end

new text begin (c) A political party that has not agreed to the
prohibition in this subdivision must file written notice with
the board and serve written notice on every other political
party within 24 hours after making an independent expenditure.
The notice must state only that the political party has made an
independent expenditure. Upon receipt of the notice, the
political party that agreed to the prohibition is no longer
subject to the prohibition but remains eligible to receive a
public subsidy.
new text end

Sec. 5.

Minnesota Statutes 2004, section 10A.275,
subdivision 1, is amended to read:

Subdivision 1.

Exceptions.

Notwithstanding other
provisions of this chapter, the following expenditures by a
party unit, or two or more party units acting together, with at
least one party unit being either: the state committee or the
party organization within a congressional district, county, or
legislative district, are not considered contributions to or
expenditures on behalf of a candidate for the purposes of
section 10A.25 or 10A.27 and must not be allocated to candidates
under section 10A.20, subdivision 3, paragraph (g):

(1) expenditures on behalf of candidates of that party
generally without referring to any of them specifically in a
published, posted, or broadcast advertisement;

(2) expenditures for the preparation, display, mailing, or
other distribution of an official party sample ballot listing
the names of three or more individuals whose names are to appear
on the ballot;

(3) expenditures for a telephone conversation deleted text begin including
deleted text end new text begin mentioning with roughly equal emphasis new text end the names of three or
more individuals whose names are to appear on the ballot; new text begin or
new text end

(4) deleted text begin expenditures for a political party fund-raising effort
on behalf of three or more candidates; or
deleted text end

deleted text begin (5) deleted text end expenditures for party committee staff services that
benefit three or more candidates.

Sec. 6.

Minnesota Statutes 2004, section 10A.28,
subdivision 1, is amended to read:

Subdivision 1.

Exceeding expenditure limits.

new text begin (a) new text end A
candidate subject to the expenditure limits in section 10A.25
who permits the candidate's principal campaign committee to make
expenditures or permits approved expenditures to be made on the
candidate's behalf in excess of the limits imposed by section
10A.25, as adjusted by section 10A.255, is subject to a civil
penalty new text begin of new text end up to four times the amount by which the expenditures
exceeded the limit.

new text begin (b) The chair of a political party or party unit subject to
the prohibition on independent expenditures in section 10A.25,
subdivision 14, who permits the political party or party unit to
make expenditures in violation of those prohibitions is subject
to a civil penalty of up to four times the amount of the
expenditures.
new text end

Sec. 7.

Minnesota Statutes 2004, section 10A.322, is
amended to read:

10A.322 SPENDING LIMIT AGREEMENTS.

Subdivision 1.

Agreement by candidate.

(a) As a
condition of receiving a public subsidy, a candidate must sign
and file with the board a written agreement in which the
candidate agrees that the candidate will comply with sections
10A.25; 10A.27, subdivision 10; 10A.31, subdivision 7, paragraph
(c); and 10A.324.

(b) Before the first day of filing for office, the board
must forward agreement forms to all filing officers. The board
must also provide agreement forms to candidates on request at
any time. The candidate must file the agreement with the board
by deleted text begin September deleted text end new text begin August new text end 1 preceding the candidate's general election
or a special election held at the general election. An
agreement may not be filed after that date. An agreement once
filed may not be rescinded.

(c) The board must notify the commissioner of revenue of
any agreement deleted text begin signed deleted text end new text begin filed new text end under this subdivision.

(d) Notwithstanding paragraph (b), if a vacancy occurs that
will be filled by means of a special election and the filing
period does not coincide with the filing period for the general
election, a candidate may sign and deleted text begin submit deleted text end new text begin file new text end a spending limit
agreement not later than the day after the candidate files the
affidavit of candidacy or nominating petition for the office.

deleted text begin Subd. 2. deleted text end

deleted text begin How long agreement is effective. deleted text end

deleted text begin deleted text end new text begin (e) new text end The
agreement, insofar as it relates to the expenditure limits in
section 10A.25, as adjusted by section 10A.255, and the
contribution limit in section 10A.27, subdivision 10, remains
effective for candidates until the dissolution of the principal
campaign committee of the candidate or the end of the first
election cycle completed after the agreement was filed,
whichever occurs first.

new text begin Subd. 2. new text end

new text begin Agreement by political party or party unit. new text end

new text begin (a)
As a condition of receiving a public subsidy, the chair of the
state committee of a political party must sign and file with the
board a written agreement in which the state committee agrees
that the political party and all its party units will comply
with section 10A.25, subdivision 14. An agreement once filed
may not be rescinded.
new text end

new text begin (b) The board must provide agreement forms to political
parties and party units on request at any time. The state chair
must file the agreement with the board by February 1 of any year
during an election cycle in order to be allocated money
designated to the party account on tax returns for the preceding
and current taxable years.
new text end

new text begin (c) The agreement remains in effect until the end of the
first general election cycle completed after the agreement was
filed or the dissolution of the political party, whichever
occurs first.
new text end

new text begin (d) The board must notify the commissioner of revenue of
any agreement filed under this subdivision.
new text end

Subd. 4.

Refund receipt forms; penalty.

new text begin (a) new text end The board
must make available to a political party deleted text begin on request and to any
deleted text end new text begin or new text end candidate for whom an agreement under this section is
effective, a supply of official refund receipt forms that state
in boldface type that (1) a contributor who is given a receipt
form is eligible to claim a refund as provided in section
290.06, subdivision 23, and (2) deleted text begin if the contribution is to a
candidate, deleted text end that the candidate new text begin or political party new text end has signed an
agreement to limit campaign expenditures as provided in this
section. The forms must provide duplicate copies of the receipt
to be attached to the contributor's claim.

new text begin (b) If new text end a candidate deleted text begin who deleted text end does not sign an agreement under
this section and deleted text begin who deleted text end new text begin the candidate or the treasurer of the
candidate's principal campaign committee new text end willfully issues an
official refund receipt deleted text begin form deleted text end or a facsimile of one to any of the
candidate's contributors new text begin , the issuer of the receipt new text end is guilty of
a misdemeanor.

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective January 1, 2006, and applies to
contributions received, expenditures made, and checkoff money
distributed on and after that date.
new text end