1.1 	A bill for an act
1.2 	relating to elections; regulating campaign finance;
1.3 	requiring annual notice of a state employee's right to
1.4 	reduce union dues expended for certain purposes;
1.5 	requiring an accounting of certain expenditures by a
1.6 	union to its members; broadening the definition of
1.7 	"corporation"; prohibiting certain government
1.8 	contributions; amending Minnesota Statutes 2004,
1.9 	sections 10A.01, by adding a subdivision; 10A.14,
1.10 	subdivision 1; 10A.20, by adding subdivisions; 10A.25,
1.11 	subdivision 2; 211B.15, subdivision 1; proposing
1.12 	coding for new law in Minnesota Statutes, chapters
1.13 	10A; 179A; 211B.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. Minnesota Statutes 2004, section 10A.01, is
1.16 	amended by adding a subdivision to read:
1.17 		Subd. 16a.Electioneering communication. "Electioneering
1.18 	communication" means a broadcast communication that refers to a
1.19 	clearly identified candidate and is made within 60 days before a
1.20 	general or special election or 30 days before a primary or
1.21 	special primary for the office sought by the candidate.
1.22 	"Electioneering communication" does not include:
1.23 	(1) a communication appearing in a news story, commentary,
1.24 	or editorial distributed by a broadcasting station or newspaper,
1.25 	unless the broadcasting station or newspaper is owned or
1.26 	controlled by a political party unit, political committee, or
1.27 	candidate;
1.28 	(2) a campaign expenditure; or 
1.29 	(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 communication. An individual,
2.23 	political committee, political fund, or political party unit
2.24 	that makes or contracts to make an expenditure for an
2.25 	electioneering communication in an aggregate amount in excess of
2.26 	$500 within 60 days before a general or special election or 30
2.27 	days before a primary or special primary for the office sought
2.28 	by the candidate identified in the electioneering communication
2.29 	must, within 24 hours of making the expenditure, file a report
2.30 	with the board 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 or contracting to make the electioneering
3.4 	communication.
3.5 	An additional report containing the information specified
3.6 	in this subdivision must be filed within 24 hours after each
3.7 	time an expenditure for an electioneering communication in an
3.8 	aggregate amount exceeding $500 is made or contracted to be made
3.9 	within 60 days before a general or special election or 30 days
3.10 	before a primary or special primary for the office sought by the
3.11 	candidate.

3.12 	Sec. 5. Minnesota Statutes 2004, section 10A.20, is
3.13 	amended by adding a subdivision to read:
3.14 		Subd. 6d.Independent expenditures. (a) An individual,
3.15 	political committee, political party unit, or political fund
3.16 	must file a report with the board each time the individual,
3.17 	political committee, political party unit, or political fund
3.18 	makes, at any time up to and including the 20th day before an
3.19 	election, independent expenditures in an aggregate amount in
3.20 	excess of $500.  The report must be filed within 48 hours after
3.21 	initially making such expenditures.  An additional report must
3.22 	be filed within 48 hours after each time an independent
3.23 	expenditure in an aggregate amount in excess of $500 is made, up
3.24 	to and including the 20th day before an election.  The report
3.25 	must include the information required to be reported under
3.26 	subdivision 3, paragraph (g).  The report must also indicate (1)
3.27 	the name and office sought by a candidate named in the
3.28 	independent expenditure and (2) whether the independent
3.29 	expenditure expressly advocates the candidate's election or
3.30 	defeat.
3.31 	(b) An individual, political committee, political party
3.32 	unit, or political fund must file a report with the board each
3.33 	time the individual, political committee, political party unit,
3.34 	or political fund makes, between the 19th day and the last day
3.35 	before an election, an independent expenditure in an aggregate
3.36 	amount in excess of $100.  The report must be filed within 24
4.1 	hours after initially making such expenditures.  An additional
4.2 	report must be filed within 24 hours after making an independent
4.3 	expenditure in an aggregate amount in excess of $100 at any time
4.4 	up to and including the 20th day before an election.  The report
4.5 	must include the information required to be reported under
4.6 	subdivision 3, paragraph (g).  The report must also indicate (1)
4.7 	the name and office sought by a candidate named in the
4.8 	independent expenditure and (2) whether the independent
4.9 	expenditure expressly advocates the candidate's election or
4.10 	defeat.

4.11 	Sec. 6. Minnesota Statutes 2004, section 10A.20, is
4.12 	amended by adding a subdivision to read:
4.13 		Subd. 6e.Encouraging voter participation. (a) An
4.14 	individual, other than a candidate, or an association that makes
4.15 	an expenditure to encourage precinct caucus attendance, voter
4.16 	registration, or voting in an aggregate amount in excess of $200
4.17 	during a calendar year must, within 24 hours of making such an
4.18 	expenditure, file a report with the board containing:
4.19 	(1) the amount of each expenditure over $100, the name and
4.20 	address of the person to whom the expenditure was made, and the
4.21 	purpose of the expenditure; and 
4.22 	(2) the election or primary to which each expenditure
4.23 	pertains.
4.24 	(b) An additional report containing the information
4.25 	specified in this subdivision must be filed within 24 hours
4.26 	after each time an expenditure subject to this subdivision is
4.27 	made during the calendar year.

4.28 	Sec. 7. Minnesota Statutes 2004, section 10A.25,
4.29 	subdivision 2, is amended to read:
4.30 		Subd. 2.Amounts.  (a) In a year in which an election is
4.31 	held for an office sought by a candidate, the principal campaign
4.32 	committee of the candidate must not make campaign expenditures
4.33 	nor permit approved expenditures to be made on behalf of the
4.34 	candidate that result in aggregate expenditures in excess of the
4.35 	following:
4.36 	(1) for governor and lieutenant governor, running together,
5.1 	$2,188,090 $2,500,000;
5.2 	(2) for attorney general, $364,690 $1,250,000;
5.3 	(3) for secretary of state and state auditor, separately,
5.4 	$182,350 $625,000;
5.5 	(4) for state senator, $54,740;
5.6 	(5) for state representative, $28,400.
5.7 	(b) In addition to the amount in paragraph (a), clause (1),
5.8 	a candidate for endorsement for the office of lieutenant
5.9 	governor at the convention of a political party may make
5.10 	campaign expenditures and approved expenditures of five percent
5.11 	of that amount to seek endorsement.
5.12 	(c) If a special election cycle occurs during a general
5.13 	election cycle, expenditures by or on behalf of a candidate in
5.14 	the special election do not count as expenditures by or on
5.15 	behalf of the candidate in the general election.
5.16 	(d) The expenditure limits in this subdivision for an
5.17 	office are increased by ten percent for a candidate who is
5.18 	running for that office for the first time and who has not run
5.19 	previously for any other office whose territory now includes a
5.20 	population that is more than one-third of the population in the
5.21 	territory of the new office.

5.22 	Sec. 8. [179A.211] STATE EMPLOYEES RIGHT-TO-KNOW ACT.
5.23 		Subdivision 1.Notice. A state employee, who is a member
5.24 	of a collective bargaining unit, shall be provided an annual
5.25 	notice no later than February 1 of the right to reduce the dues
5.26 	payable by the employee as a member of the union, or as an
5.27 	individual employed by an employer subject to a labor agreement
5.28 	containing a collective bargaining security clause, by the same
5.29 	percentage as the percentage of the collective bargaining unit's
5.30 	revenues that are expended on lobbying, political contributions,
5.31 	distribution of publications, and advertising.  The notice shall
5.32 	inform the members that they may reduce their obligation by this
5.33 	percentage by providing written notice to the collective
5.34 	bargaining unit and to the employer deducting dues from their
5.35 	pay, if any, and that they will suffer no harm or retribution
5.36 	from the employer or the union for doing so.
6.1 		Subd. 2.Accounting. A collective bargaining unit shall
6.2 	provide to its members an accounting of the actual dollar
6.3 	revenues spent by the collective bargaining unit in the
6.4 	preceding calendar year no later than February 1 the following
6.5 	year.  The accounting shall include a line item for each of the
6.6 	following:
6.7 	(1) grievance processing;
6.8 	(2) contract negotiations;
6.9 	(3) political contributions;
6.10 	(4) lobbying;
6.11 	(5) Minnesota meeting attendance and travel costs;
6.12 	(6) out-of-state meeting attendance and travel costs;
6.13 	(7) dues and contributions to the national affiliate;
6.14 	(8) advertising;
6.15 	(9) production and distribution of publications; and 
6.16 	(10) every item of expenditure constituting more than one
6.17 	percent of the total revenue of the collective bargaining unit.
6.18 	If a collective bargaining unit fails to timely provide the
6.19 	account to its members, it shall be conclusively presumed that
6.20 	one-half of members' dues are expended on the activities listed
6.21 	in clauses (1) to (9) and other expenditures not directly
6.22 	related to the representation of members.
6.23 		Subd. 3.Action. A member of a collective bargaining
6.24 	unit who is not provided a timely annual accounting or a notice
6.25 	of the employee's rights under this section by a collective
6.26 	bargaining unit shall have a cause of action for the amount of
6.27 	dues paid by the member in excess of the percentage of those
6.28 	dues dedicated to contract negotiations, grievance handling, and
6.29 	strike support, plus punitive damages in an amount of twice the
6.30 	dues, plus costs and attorney fees.

6.31 	Sec. 9. Minnesota Statutes 2004, section 211B.15,
6.32 	subdivision 1, is amended to read:
6.33 		Subdivision 1.Definitions.  For purposes of this
6.34 	section, "corporation" means:
6.35 	(1) a corporation organized for profit that does business
6.36 	in this state;
7.1 	(2) a nonprofit corporation that carries out activities in
7.2 	this state; or 
7.3 	(3) a limited liability company formed under chapter 322B,
7.4 	or under similar laws of another state, that does business in
7.5 	this state; or 
7.6 	(4) a business entity established or operated by a foreign
7.7 	government or by an entity or subdivision of an entity that
7.8 	exercises governmental functions for purposes of Public Law
7.9 	97-473, Title II.

7.10 	Sec. 10. [211B.153] CONTRIBUTIONS FROM GOVERNMENT UNITS.
7.11 	A candidate or the treasurer of a candidate's principal
7.12 	campaign committee must not accept a contribution from any
7.13 	foreign government or any state or local government unit in this
7.14 	state or in any other state.  For purposes of this subdivision,
7.15 	"government unit" means any state agency, board, commission, or
7.16 	department; or any county, statutory or home rule charter city,
7.17 	town, school district, special district, or any local board,
7.18 	commission, district, or authority created pursuant to law or
7.19 	local ordinance.  A candidate or treasurer who accepts a
7.20 	contribution prohibited by this section or a government unit
7.21 	that makes a contribution prohibited by this section is subject
7.22 	to a civil penalty not greater than $40,000.

7.23 	Sec. 11. INTERNET CAMPAIGN REPORTING AND PUBLIC SUBSIDY
7.24 	PAYMENT STUDY.
 7.25 	A work group is established to study the feasibility of
7.26 	creating an online campaign finance reporting and public subsidy
7.27 	payment system.  The work group must study the initial costs and
7.28 	long-term savings of creating a system for filing online all
7.29 	reports required by Minnesota Statutes, chapter 10A, and for
7.30 	electronically making subsidy payments under Minnesota Statutes,
7.31 	chapter 10A.  The work group must report to the chairs of the
7.32 	Civil Law and Elections Committee and the State Government
7.33 	Finance Committee in the house of representatives and the chairs
7.34 	of the Elections Committee and the State Government Budget
7.35 	Division of the Finance Committee in the senate by January 15,
7.36 	2006.
8.1 	The work group shall consist of one member of the Campaign
8.2 	Finance and Public Disclosure Board designated by the chair of
8.3 	the board, three members appointed by the governor, three
8.4 	members appointed by the speaker of the house, and three members
8.5 	appointed by the senate Subcommittee on Committees.
8.6 	The Campaign Finance and Public Disclosure Board and the
8.7 	Department of Revenue must provide staff resources to the work
8.8 	group.