SF 2471

1st Unofficial Engrossment - 86th Legislature (2009 - 2010)

Posted on 12/26/2012 11:17 p.m.

1.1A bill for an act 1.2relating to state government; regulating certain political expenditures and 1.3contributions; modifying certain filing and reporting requirements; providing 1.4civil penalties; regulating certain filings with the secretary of state;amending 1.5Minnesota Statutes 2008, sections 318.02, subdivision 1; 557.01. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to 1.8read: 1.9    Subd. 18. Independent expenditure. "Independent expenditure" means an 1.10expenditure expressly advocating the election or defeat of a clearly identified candidate, 1.11if the expenditure is made without the express or implied consent, authorization, or 1.12cooperation of, and not in concert with or at the request or suggestion of, any candidate or 1.13any candidate's principal campaign committee or agent. An independent expenditure is 1.14not a contribution to that candidate. An expenditure by a political party or political party 1.15unit in a race where the political party has a candidate on the ballot is not an independent 1.16expenditure new text begin An independent expenditure does not include the act of announcing a formal new text end 1.17 new text begin public endorsement of a candidate for public office, unless the act is simultaneously new text end 1.18 new text begin accompanied by an expenditure that would otherwise qualify as an independent new text end 1.19 new text begin expenditure under this subdivision new text end . 1.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 1.21    Sec. 2. Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision 1.22to read: 2.1     new text begin Subd. 37. new text end new text begin Independent expenditure political committee. new text end new text begin "Independent new text end 2.2 new text begin expenditure political committee" means a political committee that makes only independent new text end 2.3 new text begin expenditures and disbursements permitted under section 10A.121, subdivision 1. new text end 2.4    Sec. 3. Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision 2.5to read: 2.6     new text begin Subd. 38. new text end new text begin Independent expenditure political fund. new text end new text begin "Independent expenditure new text end 2.7 new text begin political fund" means a political fund that makes only independent expenditures and new text end 2.8 new text begin disbursements permitted under section 10A.121, subdivision 1. new text end 2.9    Sec. 4. Minnesota Statutes 2008, section 10A.12, is amended by adding a subdivision 2.10to read: 2.11     new text begin Subd. 1a. new text end new text begin When required for independent expenditures. new text end new text begin An association other new text end 2.12 new text begin than a political committee that makes only independent expenditures and disbursements new text end 2.13 new text begin permitted under section 10A.121, subdivision 1, must do so by forming and registering new text end 2.14 new text begin an independent expenditure political fund if the expenditure is in excess of $100 or by new text end 2.15 new text begin contributing to an existing independent expenditure political committee or political fund. new text end 2.16    Sec. 5. new text begin [10A.121] INDEPENDENT EXPENDITURE POLITICAL new text end 2.17 new text begin COMMITTEES AND INDEPENDENT EXPENDITURE POLITICAL FUNDS. new text end 2.18     new text begin Subdivision 1. new text end new text begin Permitted disbursements. new text end new text begin An independent expenditure political new text end 2.19 new text begin committee or an independent expenditure political fund, in addition to making independent new text end 2.20 new text begin expenditures, may: new text end 2.21 new text begin (1) pay costs associated with its fund-raising and general operations; new text end 2.22 new text begin (2) pay for communications that do not constitute contributions or approved new text end 2.23 new text begin expenditures; and new text end 2.24 new text begin (3) make contributions to other independent expenditure political committees or new text end 2.25 new text begin independent expenditure political funds. new text end 2.26     new text begin Subd. 2. new text end new text begin Penalty. new text end new text begin An independent expenditure political committee or independent new text end 2.27 new text begin expenditure political fund is subject to a civil penalty of up to four times the amount of the new text end 2.28 new text begin contribution or approved expenditure if it does the following: new text end 2.29 new text begin (1) makes a contribution to a candidate, party unit, political committee, or political new text end 2.30 new text begin fund other than an independent expenditure political committee or an independent new text end 2.31 new text begin expenditure political fund; or new text end 2.32 new text begin (2) makes an approved expenditure. new text end 2.33 new text begin This penalty supersedes any penalty otherwise provided in statute. new text end 3.1    Sec. 6. Minnesota Statutes 2008, section 10A.20, subdivision 2, is amended to read: 3.2    Subd. 2. Time for filing. (a) The reports must be filed with the board on or before 3.3January 31 of each year and additional reports must be filed as required and in accordance 3.4with paragraphs (b) and (c). 3.5(b) In each year in which the name of the candidate is on the ballot, the report of 3.6the principal campaign committee must be filed 15 days before a primary and ten days 3.7before a general election, seven days before a special primary and a special election, 3.8and ten days after a special election cycle. 3.9(c) In each general election year, a political committee, political fund, or party 3.10unit must file reports new text begin 28 and new text end 15 days before a primary and ten new text begin 42 and 15 new text end days before a 3.11general election. new text begin Beginning in 2012, reports required under this paragraph must also be new text end 3.12 new text begin filed 56 days before a primary. new text end 3.13    Sec. 7. Minnesota Statutes 2008, section 10A.20, subdivision 4, is amended to read: 3.14    Subd. 4. Period of report. A report must cover the period from the last day covered 3.15by the previous report new text begin January 1 of the reporting year new text end to seven days before the filing date, 3.16except that the report due on January 31 must cover the period from the last day covered 3.17by the previous report to December 31. 3.18    Sec. 8. Minnesota Statutes 2008, section 10A.20, subdivision 12, is amended to read: 3.19    Subd. 12. Failure to file; penalty. The board must send a notice by certified mail 3.20to any individual who fails to file a statement required by this section. If an individual 3.21fails to file a statement due January 31 within ten business days after the notice was sent, 3.22the board may impose a late filing fee of $5 new text begin $25 new text end per day, not to exceed $100 new text begin $1,000 new text end , 3.23commencing with the 11th day after the notice was sent. 3.24If an individual fails to file a statement due before a primary or election within three 3.25days after the date due, regardless of whether the individual has received any notice, the 3.26board may impose a late filing fee of $50 per day, not to exceed $500 new text begin $1,000 new text end , commencing 3.27on the fourth day after the date the statement was due. 3.28The board must send an additional notice by certified mail to an individual who fails 3.29to file a statement within 14 days after the first notice was sent by the board that the 3.30individual may be subject to a civil penalty for failure to file a statement. An individual 3.31who fails to file the statement within seven days after the second notice was sent by the 3.32board is subject to a civil penalty imposed by the board of up to $1,000. 3.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective June 1, 2010, and applies to new text end 3.34 new text begin statements required to be filed on or after that date. new text end 4.1    Sec. 9. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 4.2to read: 4.3     new text begin Subd. 14. new text end new text begin Contributions of business revenue. new text end new text begin An association may, if not new text end 4.4 new text begin prohibited by other law, contribute revenue from the operation of a business to an new text end 4.5 new text begin independent expenditure political committee or an independent expenditure political fund new text end 4.6 new text begin without complying with section 10A.27, subdivision 13. new text end 4.7    Sec. 10. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 4.8to read: 4.9     new text begin Subd. 15. new text end new text begin Contributions of dues or contribution revenue. new text end new text begin An association may, new text end 4.10 new text begin if not prohibited by other law, contribute revenue from membership dues or fees, or new text end 4.11 new text begin from contributions received by the association to an independent expenditure political new text end 4.12 new text begin committee or an independent expenditure political fund without complying with section new text end 4.13 new text begin 10A.27, subdivision 13. Before the day when the recipient committee's or fund's new text end 4.14 new text begin next report must be filed with the board under section 10A.20, subdivision 2 or 5, an new text end 4.15 new text begin association that has contributed $2,000 or more in aggregate to independent expenditure new text end 4.16 new text begin political committees or funds during the calendar year must provide in writing to the new text end 4.17 new text begin recipient's treasurer a statement that includes the name and address of each association new text end 4.18 new text begin that paid the association dues or fees, or made contributions to the association that, in new text end 4.19 new text begin total, aggregate $1,000 or more between January 1 of the calendar year and the date of new text end 4.20 new text begin the contribution. The statement must be certified as true and correct by an officer of the new text end 4.21 new text begin contributing association. new text end 4.22    Sec. 11. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 4.23to read: 4.24     new text begin Subd. 16. new text end new text begin Treasurer to submit disclosure statements. new text end new text begin The treasurer of a political new text end 4.25 new text begin committee or political fund receiving a statement required under section 10A.27, new text end 4.26 new text begin subdivision 15, must file a copy of the statement before the deadline for the committee's new text end 4.27 new text begin or fund's next report filed with the board under section 10A.20, subdivision 2 or 5, after new text end 4.28 new text begin receiving the statement. new text end 4.29    Sec. 12. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 4.30to read: 4.31     new text begin Subd. 17. new text end new text begin Penalty. new text end new text begin (a) An association that makes a contribution under section new text end 4.32 new text begin 10A.27, subdivision 15, and fails to provide the required statement within the time new text end 5.1 new text begin specified is subject to a civil penalty of up to four times the amount of the contribution, new text end 5.2 new text begin but not to exceed $25,000, except when the violation was intentional. new text end 5.3 new text begin (b) An independent expenditure political committee or an independent expenditure new text end 5.4 new text begin political fund that files a report without including the statement required under section new text end 5.5 new text begin 10A.27, subdivision 15, is subject to a civil penalty of up to four times the amount of the new text end 5.6 new text begin contribution for which disclosure was not filed, but not to exceed $25,000, except when new text end 5.7 new text begin the violation was intentional. new text end 5.8 new text begin (c) The penalties provided under this subdivision supersede any penalty otherwise new text end 5.9 new text begin provided in statute. new text end 5.10    Sec. 13. Minnesota Statutes 2008, section 211B.01, subdivision 3, is amended to read: 5.11    Subd. 3. Candidate. "Candidate" means an individual who seeks nomination 5.12or election to a federal, statewide, legislative, judicial, or local office including special 5.13districts, school districts, towns, home rule charter and statutory cities, and counties, 5.14except candidates for president and vice-president of the United States. 5.15    Sec. 14. Minnesota Statutes 2008, section 211B.04, is amended to read: 5.16211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER. 5.17(a) A person who participates in the preparation or dissemination of campaign 5.18material other than as provided in section 211B.05, subdivision 1, that does not 5.19prominently include the name and address of the person or committee causing the material 5.20to be prepared or disseminated in a disclaimer substantially in the form provided in 5.21paragraph (b) or (c) is guilty of a misdemeanor. 5.22(b) Except in cases covered by paragraph (c), the required form of disclaimer is: 5.23"Prepared and paid for by the .......... committee, .........(address)" for material prepared 5.24and paid for by a principal campaign committee, or "Prepared and paid for by the .......... 5.25committee, .........(address), in support of .........(insert name of candidate or ballot 5.26question)" for material prepared and paid for by a person or committee other than a 5.27principal campaign committee. 5.28(c) In the case of broadcast media, the required form of disclaimer is: "Paid for by 5.29the ............ committee." 5.30(d) Campaign material that is not circulated on behalf of a particular candidate 5.31or ballot question must also include in the disclaimer either that it is "in opposition to 5.32.....(insert name of candidate or ballot question.....)"; or that "this publication is not 5.33circulated on behalf of any candidate or ballot question." 6.1(e) This section does not apply to objects stating only the candidate's name and 6.2the office sought, fund-raising tickets, or personal letters that are clearly being sent by 6.3the candidate. 6.4(f) This section does not apply to an individual or association who acts independently 6.5of any candidate, candidate's committee, political committee, or political fund and spends 6.6only from the individual's or association's own resources a sum that is less than $500 new text begin new text end 6.7 new text begin $2,000 new text end in the aggregate to produce or distribute campaign material that is distributed at 6.8least seven days before the election to which the campaign material relates. 6.9(g) This section does not modify or repeal section 211B.06. 6.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective June 1, 2010, and applies to new text end 6.11 new text begin campaign material prepared and disseminated on or after that date. new text end 6.12    Sec. 15. Minnesota Statutes 2008, section 211B.15, subdivision 2, is amended to read: 6.13    Subd. 2. Prohibited contributions. A corporation may not make a contribution 6.14or offer or agree to make a contribution, directly or indirectly, of any money, property, 6.15free service of its officers, employees, or members, or thing of monetary value to a 6.16major political party, organization, committee, or individual to promote or defeat the 6.17candidacy of an individual for nomination, election, or appointment to a political office. 6.18For the purpose of this subdivision, "contribution" includes an expenditure to promote or 6.19defeat the election or nomination of a candidate to a political office that is made with the 6.20authorization or expressed or implied consent of, or in cooperation or in concert with, or at 6.21the request or suggestion of, a candidate or committee established to support or oppose a 6.22candidate new text begin but does not include an independent expenditure authorized by subdivision 3 new text end . 6.23    Sec. 16. Minnesota Statutes 2008, section 211B.15, subdivision 3, is amended to read: 6.24    Subd. 3. Independent expenditures. A corporation may not make an independent 6.25expenditure or offer or agree to make an independent expenditure to promote or defeat the 6.26candidacy of an individual for nomination, election, or appointment to a political office new text begin , new text end 6.27 new text begin unless the expenditure is an independent expenditure new text end . For the purpose of this subdivision, 6.28"independent expenditure" means an expenditure that is not made with the authorization 6.29or expressed or implied consent of, or in cooperation or concert with, or at the request 6.30or suggestion of, a candidate or committee established to support or oppose a candidate new text begin new text end 6.31 new text begin has the meaning given in section 10A.01, subdivision 18 new text end . 6.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 7.1    Sec. 17. Minnesota Statutes 2008, section 216B.16, is amended by adding a 7.2subdivision to read: 7.3     new text begin Subd. 17. new text end new text begin Election or ballot question expenses. new text end new text begin The commission may not allow new text end 7.4 new text begin a public utility to recover from ratepayers expenses resulting from a contribution or new text end 7.5 new text begin expenditure made for a political purpose, as defined in section 211B.01. This subdivision new text end 7.6 new text begin does not prohibit a public utility from engaging in political activity or making a new text end 7.7 new text begin contribution or expenditure otherwise permitted by law. new text end 7.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 7.9    Sec. 18. Minnesota Statutes 2008, section 318.02, subdivision 1, is amended to read: 7.10    Subdivision 1. Definition. The term "declaration of trust" as used in this section 7.11means the declaration of trust, business trust instrument, trust indenture, contract of 7.12custodianship, or other instrument pursuant to which such association is organized. Every 7.13such association organized after April 20, 1961, for the purpose of transacting business 7.14in this state shall, prior to transacting any business in this state, file in the Office of the 7.15Secretary of State a true and correct copy of the "declaration of trust" under which the 7.16association proposes to conduct its business. The copy shall also contain a statement that 7.17the true and correct copy of the "declaration of trust" is being filed in the Office of the 7.18Secretary of State of the state of Minnesota pursuant to this chapter and shall also include 7.19the full name and street address of an agent of the business trust in this state. That agent 7.20shall be the agent for service of process which shall be made pursuant to the provisions 7.21of section 543.08. The "declaration of trust" may provide that the duration of such 7.22association shall be perpetual. Upon the filing of the copy of the "declaration of trust new text begin , new text end " and 7.23the payment of a filing fee of $150 to the secretary of state, the secretary of state shall issue 7.24to such association, or to the trustees named in the said "declaration of trust," or to the 7.25persons or parties to the "declaration of trust," a certificate showing that such "declaration 7.26of trust" has been duly filed; whereupon, such association in its name shall be authorized 7.27to transact business in this state; provided that all other applicable laws have been 7.28complied with. The "declaration of trust" may be amended as provided in the "declaration 7.29of trust" or in any amendments thereto but a true and correct copy of all amendments to the 7.30"declaration of trust," shall be filed in the Office of the Secretary of State upon the payment 7.31of a filing fee of $50 to the secretary of state and all amendments shall become effective at 7.32the time of said filing. When such copy of the "declaration of trust" and any amendments 7.33thereto shall have been filed in the Office of the Secretary of State it shall constitute public 7.34notice as to the purposes and manner of the business to be engaged in by such association. 8.1    Sec. 19. Minnesota Statutes 2008, section 557.01, is amended to read: 8.2557.01 NONRESIDENT, AGENT TO ACCEPT SERVICE. 8.3Any nonresident person or corporation owning or claiming any interest or lien in 8.4or upon lands in the state may file with the secretary of state a writing, executed and 8.5acknowledged in the manner of a conveyance, appointing a resident agent, whose place 8.6of residence shall be stated, to accept service of process or summons in any action or 8.7proceeding in the courts of the state concerning such interest or lien, except actions or 8.8proceedings for the collection of taxes, and consenting that service of such process or 8.9summons upon such agent shall be binding upon the person executing the same. Such 8.10writing shall be recorded by the secretary. No service by publication of summons shall 8.11be made upon any such nonresident who has complied with the provisions hereof, but in 8.12all such cases service of such process or summons, or of any writ or notice in the action 8.13or proceedings, shall be made upon such agent in the manner provided by law for such 8.14service upon residents of the state, and have the same effect as personal service within 8.15the state upon such owner or claimant; but, if such party appears by attorneys therein, the 8.16service of papers shall thereafter be upon such attorney. The authority of such agent 8.17may be revoked by writing similarly executed and acknowledged and recorded, but no 8.18revocation shall affect any action or proceeding then pending. For filing and recording 8.19such papers the secretary shall be entitled to 15 cents for each folio new text begin The fee for each filing new text end 8.20 new text begin made under this section is $50 new text end . 8.21    Sec. 20. new text begin REPEALER. new text end 8.22 new text begin Minnesota Statutes 2008, sections 72A.12, subdivision 5; and 211B.15, subdivision new text end 8.23 new text begin 12, new text end new text begin are repealed. new text end 8.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end