1.1 	A bill for an act
1.2 	relating to elections; campaign finance; changing
1.3 	certain disclosure requirements; limiting independent
1.4 	expenditures by political party units; regulating
1.5 	electioneering communications; increasing certain
1.6 	expenditure limits; broadening the definition of
1.7 	"corporation"; prohibiting certain government
1.8 	contributions; establishing a work group; amending
1.9 	Minnesota Statutes 2004, sections 10A.01, by adding a
1.10 	subdivision; 10A.14, subdivision 1; 10A.20, by adding
1.11 	subdivisions; 10A.25, subdivision 2; 10A.322,
1.12 	subdivisions 2, 4, by adding a subdivision; 211B.15,
1.13 	subdivision 1; 290.06, subdivision 23; proposing
1.14 	coding for new law in Minnesota Statutes, chapters
1.15 	10A; 211B.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	Section 1. Minnesota Statutes 2004, section 10A.01, is
1.18 	amended by adding a subdivision to read:
1.19 		Subd. 16a.Electioneering communication. "Electioneering
1.20 	communication" means a broadcast communication that refers to a
1.21 	clearly identified candidate and is made within 60 days before a
1.22 	general or special election or 30 days before a primary or
1.23 	special primary for the office sought by the candidate.
1.24 	"Electioneering communication" does not include:
1.25 	(1) a communication appearing in a news story, commentary,
1.26 	or editorial distributed by a broadcasting station, unless the
1.27 	broadcasting station is owned or controlled by a political party
1.28 	unit, political committee, or candidate;
1.29 	(2) a campaign expenditure; or 
1.30 	(3) an independent expenditure.

2.1 	Sec. 2. Minnesota Statutes 2004, section 10A.14,
2.2 	subdivision 1, is amended to read:
2.3 		Subdivision 1.First registration.  The treasurer of a
2.4 	political committee, political fund, principal campaign
2.5 	committee, or party unit must register with the board by filing
2.6 	a statement of organization no later than 14 days 48 hours after
2.7 	the committee, fund, or party unit has made a contribution,
2.8 	received contributions, or made expenditures in excess of $100.

2.9 	Sec. 3. [10A.165] COORDINATED ELECTIONEERING
2.10 	COMMUNICATIONS; CONTRIBUTIONS; EXPENDITURES.
2.11 	If an individual, political committee, political fund, or
2.12 	political party unit makes an expenditure for an electioneering
2.13 	communication as defined in section 10A.01, subdivision 16a,
2.14 	that is coordinated with a principal campaign committee or
2.15 	political party unit, the electioneering communication
2.16 	constitutes a contribution to, and an expenditure by, the
2.17 	principal campaign committee of the candidate named in the
2.18 	electioneering communication or of the political party unit
2.19 	whose candidate is named in the electioneering communication.

2.20 	Sec. 4. Minnesota Statutes 2004, section 10A.20, is
2.21 	amended by adding a subdivision to read:
2.22 		Subd. 6c.Electioneering communications. An individual,
2.23 	political committee, political fund, or political party unit
2.24 	that makes an expenditure for an electioneering communication in
2.25 	an aggregate amount in excess of $500 within 60 days before a
2.26 	general or special election or 30 days before a primary or
2.27 	special primary for the office sought by the candidate
2.28 	identified in the electioneering communication must, within 24
2.29 	hours of making the expenditure, file a report with the board
2.30 	containing the following information:
2.31 	(1) the amount of each expenditure over $100, the name and
2.32 	address of the person to whom the expenditure was made or
2.33 	contracted to be made, and the purpose of the expenditure;
2.34 	(2) the election or primary to which each electioneering
2.35 	communication pertains and the name of any candidate to be
2.36 	identified in the electioneering communication; and 
3.1 	(3) in the case of a report filed by an individual, the
3.2 	name, address, and employer or occupation, if self-employed, of
3.3 	the individual making the electioneering communication.
3.4 	An additional report containing the information specified
3.5 	in this subdivision must be filed within 24 hours after each
3.6 	time an expenditure for an electioneering communication in an
3.7 	aggregate amount exceeding $500 is made within 60 days before a
3.8 	general or special election or 30 days before a primary or
3.9 	special primary for the office sought by the candidate.

3.10 	Sec. 5. Minnesota Statutes 2004, section 10A.20, is
3.11 	amended by adding a subdivision to read:
3.12 		Subd. 6d.Independent expenditures. (a) An individual,
3.13 	political committee, political party unit, or political fund
3.14 	must file a report with the board each time the individual,
3.15 	political committee, political party unit, or political fund
3.16 	makes, at any time up to and including the 20th day before an
3.17 	election, independent expenditures in an aggregate amount in
3.18 	excess of $500.  The report must be filed within 48 hours after
3.19 	initially making the expenditures.  An additional report must be
3.20 	filed within 48 hours after each time independent expenditures
3.21 	in an aggregate amount in excess of $500 are made, up to and
3.22 	including the 20th day before an election.  The report must
3.23 	include the information required to be reported under
3.24 	subdivision 3, paragraph (g).
3.25 	(b) An individual, political committee, political party
3.26 	unit, or political fund must file a report with the board each
3.27 	time the individual, political committee, political party unit,
3.28 	or political fund makes, between the 19th day and the last day
3.29 	before an election, independent expenditures in an aggregate
3.30 	amount in excess of $100.  The report must be filed within 24
3.31 	hours after initially making the expenditures.  An additional
3.32 	report must be filed within 24 hours after making independent
3.33 	expenditures in an aggregate amount in excess of $100 at any
3.34 	time up to and including the 20th day before an election.  The
3.35 	report must include the information required to be reported
3.36 	under subdivision 3, paragraph (g).

4.1 	Sec. 6. Minnesota Statutes 2004, section 10A.25,
4.2 	subdivision 2, is amended to read:
4.3 		Subd. 2.Amounts.  (a) In a year in which an election is
4.4 	held for an office sought by a candidate, the principal campaign
4.5 	committee of the candidate must not make campaign expenditures
4.6 	nor permit approved expenditures to be made on behalf of the
4.7 	candidate that result in aggregate expenditures in excess of the
4.8 	following:
4.9 	(1) for governor and lieutenant governor, running together,
4.10 	$2,188,090 $2,500,000;
4.11 	(2) for attorney general, $364,690 $1,250,000;
4.12 	(3) for secretary of state and state auditor, separately,
4.13 	$182,350 $625,000;
4.14 	(4) for state senator, $54,740;
4.15 	(5) for state representative, $28,400.
4.16 	(b) In addition to the amount in paragraph (a), clause (1),
4.17 	a candidate for endorsement for the office of lieutenant
4.18 	governor at the convention of a political party may make
4.19 	campaign expenditures and approved expenditures of five percent
4.20 	of that amount to seek endorsement.
4.21 	(c) If a special election cycle occurs during a general
4.22 	election cycle, expenditures by or on behalf of a candidate in
4.23 	the special election do not count as expenditures by or on
4.24 	behalf of the candidate in the general election.
4.25 	(d) The expenditure limits in this subdivision for an
4.26 	office are increased by ten percent for a candidate who is
4.27 	running for that office for the first time and who has not run
4.28 	previously for any other office whose territory now includes a
4.29 	population that is more than one-third of the population in the
4.30 	territory of the new office.

4.31 	Sec. 7. [10A.258] PARTY UNIT INDEPENDENT EXPENDITURE
4.32 	LIMITS.
4.33 	A political party unit that has signed an agreement under
4.34 	section 10A.322 and participates in the political contribution
4.35 	refund program must not make aggregate independent expenditures
4.36 	in a race in excess of $2,000.

5.1 	Sec. 8. Minnesota Statutes 2004, section 10A.322, is
5.2 	amended by adding a subdivision to read:
5.3 		Subd. 1a.Political party agreement. As a condition of
5.4 	issuing political contribution refund receipts under subdivision
5.5 	4, a political party unit must sign and file with the board a
5.6 	written agreement in which the political party unit agrees that
5.7 	it will comply with section 10A.258.  A political party unit may
5.8 	obtain an agreement form from the board and must file the form
5.9 	by September 1 preceding a general election in connection with
5.10 	which the political party unit intends to issue refund receipt
5.11 	forms.  An agreement may not be filed after that date.  Once
5.12 	filed, an agreement may not be rescinded.  The board must notify
5.13 	the commissioner of revenue of any agreement filed under this
5.14 	subdivision.

5.15 	Sec. 9. Minnesota Statutes 2004, section 10A.322,
5.16 	subdivision 2, is amended to read:
5.17 		Subd. 2.How long agreement is effective. (a) The
5.18 	agreement, insofar as it relates to the expenditure limits in
5.19 	section 10A.25, as adjusted by section 10A.255, and the
5.20 	contribution limit in section 10A.27, subdivision 10, remains
5.21 	effective for candidates until the dissolution of the principal
5.22 	campaign committee of the candidate or the end of the first
5.23 	election cycle completed after the agreement was filed,
5.24 	whichever occurs first.
5.25 	(b) The agreement, insofar as it relates to the independent
5.26 	expenditure limits in section 10A.258, remains effective for
5.27 	political party units until the end of the first election cycle
5.28 	completed after the agreement was filed.

5.29 	Sec. 10. Minnesota Statutes 2004, section 10A.322,
5.30 	subdivision 4, is amended to read:
5.31 		Subd. 4.Refund receipt forms; penalty.  The board must
5.32 	make available to a political party on request that has filed an
5.33 	agreement under subdivision 1a and to any candidate for whom an
5.34 	agreement under this section is effective, a supply of official
5.35 	refund receipt forms that state in boldface type that (1) a
5.36 	contributor who is given a receipt form is eligible to claim a
6.1 	refund as provided in section 290.06, subdivision 23, and (2) if
6.2 	the contribution is to a candidate, that the candidate has
6.3 	signed an agreement to limit campaign expenditures as provided
6.4 	in this section; or, if the contribution is to a political party
6.5 	unit, that the political party unit has signed an agreement to
6.6 	limit independent expenditures as provided in subdivision 1a.
6.7 	The forms must provide duplicate copies of the receipt to be
6.8 	attached to the contributor's claim.  A candidate who or
6.9 	political party unit that does not sign an agreement under this
6.10 	section and who willfully issues an official refund receipt form
6.11 	or a facsimile of one to any of the candidate's or political
6.12 	party units contributors is guilty of a misdemeanor.

6.13 	Sec. 11. Minnesota Statutes 2004, section 211B.15,
6.14 	subdivision 1, is amended to read:
6.15 		Subdivision 1.Definitions.  For purposes of this
6.16 	section, "corporation" means:
6.17 	(1) a corporation organized for profit that does business
6.18 	in this state;
6.19 	(2) a nonprofit corporation that carries out activities in
6.20 	this state; or 
6.21 	(3) a limited liability company formed under chapter 322B,
6.22 	or under similar laws of another state, that does business in
6.23 	this state; or 
6.24 	(4) a business entity established or operated by a foreign
6.25 	government or by an entity or subdivision of an entity that
6.26 	exercises governmental functions for purposes of Public Law
6.27 	97-473, Title II.

6.28 	Sec. 12. [211B.153] CONTRIBUTIONS FROM GOVERNMENT UNITS.
6.29 	A candidate or the treasurer of a candidate's principal
6.30 	campaign committee must not accept a contribution from any
6.31 	foreign government or any state or local government unit in this
6.32 	state or in any other state.  For purposes of this subdivision,
6.33 	"government unit" means any state agency, board, commission, or
6.34 	department; or any county, statutory or home rule charter city,
6.35 	town, school district, special district, or any local board,
6.36 	commission, district, or authority created pursuant to law or
7.1 	local ordinance.  A candidate or treasurer who accepts a
7.2 	contribution prohibited by this section or a government unit
7.3 	that makes a contribution prohibited by this section is subject
7.4 	to a civil penalty not greater than $40,000.

7.5 	Sec. 13. Minnesota Statutes 2004, section 290.06,
7.6 	subdivision 23, is amended to read:
7.7 		Subd. 23.Refund of contributions to political parties
7.8 	and candidates.  (a) A taxpayer may claim a refund equal to the
7.9 	amount of the taxpayer's contributions made in the calendar year
7.10 	to candidates and to a political party.  The maximum refund for
7.11 	an individual must not exceed $50 and for a married couple,
7.12 	filing jointly, must not exceed $100.  A refund of a
7.13 	contribution is allowed only if the taxpayer files a form
7.14 	required by the commissioner and attaches to the form a copy of
7.15 	an official refund receipt form issued by the candidate or party
7.16 	and signed by the candidate, the treasurer of the candidate's
7.17 	principal campaign committee, or the chair or treasurer of the
7.18 	party unit, after the contribution was received.  The receipt
7.19 	forms must be numbered, and the data on the receipt that are not
7.20 	public must be made available to the campaign finance and public
7.21 	disclosure board upon its request.  A claim must be filed with
7.22 	the commissioner no sooner than January 1 of the calendar year
7.23 	in which the contribution was made and no later than April 15 of
7.24 	the calendar year following the calendar year in which the
7.25 	contribution was made.  A taxpayer may file only one claim per
7.26 	calendar year.  Amounts paid by the commissioner after June 15
7.27 	of the calendar year following the calendar year in which the
7.28 	contribution was made must include interest at the rate
7.29 	specified in section 270.76.
7.30 	(b) No refund is allowed under this subdivision for a
7.31 	contribution to a candidate or political party unless the
7.32 	candidate or political party unit:
7.33 	(1) has signed an agreement to limit campaign expenditures
7.34 	as provided in section 10A.322;
7.35 	(2) in the case of a candidate,is seeking an office for
7.36 	which voluntary spending limits are specified in section 10A.25;
8.1 	and
8.2 	(3) in the case of a candidate,has designated a principal
8.3 	campaign committee.
8.4 	This subdivision does not limit the independent
8.5 	expenditures of a political party unit or the campaign
8.6 	expenditures of a candidate who does not sign an agreement but
8.7 	accepts a contribution for which the contributor improperly
8.8 	claims a refund.
8.9 	(c) For purposes of this subdivision, "political party"
8.10 	means a major political party as defined in section 200.02,
8.11 	subdivision 7, or a minor political party qualifying for
8.12 	inclusion on the income tax or property tax refund form under
8.13 	section 10A.31, subdivision 3a.
8.14 	A "major party" or "minor party" includes the aggregate of
8.15 	that party's organization within each house of the legislature,
8.16 	the state party organization, and the party organization within
8.17 	congressional districts, counties, legislative districts,
8.18 	municipalities, and precincts.
8.19 	"Candidate" means a candidate as defined in section 10A.01,
8.20 	subdivision 10, except a candidate for judicial office.
8.21 	"Contribution" means a gift of money.
8.22 	(d) The commissioner shall make copies of the form
8.23 	available to the public and candidates upon request.
8.24 	(e) The following data collected or maintained by the
8.25 	commissioner under this subdivision are private:  the identities
8.26 	of individuals claiming a refund, the identities of candidates
8.27 	to whom those individuals have made contributions, and the
8.28 	amount of each contribution.
8.29 	(f) The commissioner shall report to the campaign finance
8.30 	and public disclosure board by each August 1 a summary showing
8.31 	the total number and aggregate amount of political contribution
8.32 	refunds made on behalf of each candidate and each political
8.33 	party.  These data are public.
8.34 	(g) The amount necessary to pay claims for the refund
8.35 	provided in this section is appropriated from the general fund
8.36 	to the commissioner of revenue.
9.1 	(h) For a taxpayer who files a claim for refund via the
9.2 	Internet or other electronic means, the commissioner may accept
9.3 	the number on the official receipt as documentation that a
9.4 	contribution was made rather than the actual receipt as required
9.5 	by paragraph (a).

9.6 	Sec. 14. INTERNET CAMPAIGN REPORTING AND PUBLIC SUBSIDY
9.7 	PAYMENT STUDY.
 9.8 	A work group is established to study the feasibility of
9.9 	creating an online campaign finance reporting and public subsidy
9.10 	payment system.  The work group must study the initial costs and
9.11 	long-term savings of creating a system for filing online all
9.12 	reports required by Minnesota Statutes, chapter 10A, and for
9.13 	electronically making subsidy payments under Minnesota Statutes,
9.14 	chapter 10A.  The work group must report to the chairs of the
9.15 	Civil Law and Elections Committee and the State Government
9.16 	Finance Committee in the house of representatives and the chairs
9.17 	of the Elections Committee and the State Government Budget
9.18 	Division of the Finance Committee in the senate by January 15,
9.19 	2006.
9.20 	The work group shall consist of one member of the Campaign
9.21 	Finance and Public Disclosure Board designated by the chair of
9.22 	the board, three members appointed by the governor, three
9.23 	members appointed by the speaker of the house, and three members
9.24 	appointed by the senate Committee on Committees.
9.25 	The Campaign Finance and Public Disclosure Board and the
9.26 	Department of Revenue must provide staff resources to the work
9.27 	group.