SF 1911

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/04/2025 09:12 a.m.

A bill for an act
relating to campaign finance; establishing the Minnesota Civic Fund program;
repealing the political contribution refund program; authorizing rulemaking;
appropriating money; amending Minnesota Statutes 2024, sections 10A.01,
subdivision 11; 10A.02, subdivision 13; 10A.15, subdivision 1; 10A.20, subdivision
3; 10A.322, subdivision 4; 10A.34, subdivision 4; 289A.37, subdivision 2; 289A.50,
subdivision 1; 290.01, subdivision 6; 290.06, subdivision 23; proposing coding
for new law as Minnesota Statutes, chapter 10B; repealing Minnesota Statutes
2024, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 290.06, subdivision
23.

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

Section 1.

Minnesota Statutes 2024, section 10A.01, subdivision 11, is amended to read:

Subd. 11.

Contribution.

(a) "Contribution" means money, a negotiable instrument, new text begin
Minnesota Civic Fund credit redemption under chapter 10B, new text end or a donation in kind that is
given to a political committee, political fund, principal campaign committee, local candidate,
or party unit. An allocation by an association of general treasury money to be used for
activities that must be or are reported through the association's political fund is considered
to be a contribution for the purposes of disclosure required by this chapter.

(b) "Contribution" includes a loan or advance of credit to a political committee, political
fund, principal campaign committee, local candidate, or party unit, if the loan or advance
of credit is: (1) forgiven; or (2) repaid by an individual or an association other than the
political committee, political fund, principal campaign committee, local candidate, or party
unit to which the loan or advance of credit was made. If an advance of credit or a loan is
forgiven or repaid as provided in this paragraph, it is a contribution in the year in which the
loan or advance of credit was made.

(c) "Contribution" does not include services provided without compensation by an
individual volunteering personal time on behalf of a candidate, local candidate, ballot
question, political committee, political fund, principal campaign committee, or party unit;
the publishing or broadcasting of news items or editorial comments by the news media; or
an individual's unreimbursed personal use of an automobile owned by the individual while
volunteering personal time.

Sec. 2.

Minnesota Statutes 2024, section 10A.02, subdivision 13, is amended to read:

Subd. 13.

Rules.

(a) Chapter 14 applies to the board. The board may adopt rules to carry
out the purposes of this chapter new text begin and chapter 10B new text end .

(b) In addition to the notice required under chapter 14, the board shall notify the chairs
and ranking minority members of the committees or subcommittees in the senate and house
of representatives with primary jurisdiction over elections within seven calendar days of
taking the following actions:

(1) publication of a notice of intent to adopt rules or a notice of hearing;

(2) publication of proposed rules in the State Register;

(3) issuance of a statement of need and reasonableness; or

(4) adoption of final rules.

Sec. 3.

Minnesota Statutes 2024, section 10A.15, subdivision 1, is amended to read:

Subdivision 1.

Anonymous contributions.

A political committee, political fund, principal
campaign committee, or party unit may not retain an anonymous contribution in excess of
$20, but must forward it to the board for deposit in the general account of the state elections
campaign account. new text begin An anonymous contribution is not an eligible contribution for purposes
of qualifying for the Minnesota Civic Fund credit program established in chapter 10B.
new text end

Sec. 4.

Minnesota Statutes 2024, section 10A.20, subdivision 3, is amended to read:

Subd. 3.

Contents of report.

(a) The report required by this section must include each
of the items listed in paragraphs (b) to deleted text begin (q) deleted text end new text begin (r) new text end that are applicable to the filer. The board shall
prescribe forms based on filer type indicating which of those items must be included on the
filer's report.

(b) The report must disclose the amount of liquid assets on hand at the beginning of the
reporting period.

(c) The report must disclose the name, address, employer, or occupation if self-employed,
and registration number if registered with the board, of each individual or association that
has made one or more contributions to the reporting entity, including the purchase of tickets
for a fundraising effort, that in aggregate within the year exceed $200 for legislative or
statewide candidates or more than $500 for ballot questions, together with the amount and
date of each contribution, and the aggregate amount of contributions within the year from
each source so disclosed. A donation in kind must be disclosed at its fair market value. An
approved expenditure must be listed as a donation in kind. A donation in kind is considered
consumed in the reporting period in which it is received. The names of contributors must
be listed in alphabetical order. Contributions from the same contributor must be listed under
the same name. When a contribution received from a contributor in a reporting period is
added to previously reported unitemized contributions from the same contributor and the
aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
employer, or occupation if self-employed, of the contributor must then be listed on the
report.

(d) new text begin The report must disclose the aggregate value of all Minnesota Civic Fund credits
redeemed under section 10B.08 by the reporting entity during the reporting period.
new text end

new text begin (e) new text end The report must disclose the sum of contributions to the reporting entity during the
reporting period.

deleted text begin (e) deleted text end new text begin (f) new text end The report must disclose each loan made or received by the reporting entity within
the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
together with the name, address, occupation, principal place of business, if any, and
registration number if registered with the board of the lender and any endorser and the date
and amount of the loan. If a loan made to the principal campaign committee of a candidate
is forgiven or is repaid by an entity other than that principal campaign committee, it must
be reported as a contribution for the year in which the loan was made.

deleted text begin (f) deleted text end new text begin (g) new text end The report must disclose each receipt over $200 during the reporting period not
otherwise listed under paragraphs (c) to deleted text begin (e) deleted text end new text begin (f) new text end .

deleted text begin (g) deleted text end new text begin (h) new text end The report must disclose the sum of all receipts of the reporting entity during the
reporting period.

deleted text begin (h) deleted text end new text begin (i) new text end The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom aggregate expenditures, approved
expenditures, independent expenditures, and ballot question expenditures have been made
by or on behalf of the reporting entity within the year in excess of $200, together with the
amount, date, and purpose of each expenditure, including an explanation of how the
expenditure was used, and the name and address of, and office sought by, each candidate
or local candidate on whose behalf the expenditure was made, identification of the ballot
question that the expenditure was intended to promote or defeat and an indication of whether
the expenditure was to promote or to defeat the ballot question, and in the case of independent
expenditures made in opposition to a candidate or local candidate, the candidate's or local
candidate's name, address, and office sought. A reporting entity making an expenditure on
behalf of more than one candidate or local candidate must allocate the expenditure among
the candidates and local candidates on a reasonable cost basis and report the allocation for
each candidate or local candidate. The report must list on separate schedules any independent
expenditures made on behalf of local candidates and any expenditures made for ballot
questions as defined in section 10A.01, subdivision 7, clause (2), (3), or (4).

deleted text begin (i) deleted text end new text begin (j) new text end The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

deleted text begin (j) deleted text end new text begin (k) new text end The report must disclose the amount and nature of an advance of credit incurred
by the reporting entity, continuously reported until paid or forgiven. If an advance of credit
incurred by the principal campaign committee of a candidate is forgiven by the creditor or
paid by an entity other than that principal campaign committee, it must be reported as a
donation in kind for the year in which the advance of credit was made.

deleted text begin (k) deleted text end new text begin (l) new text end The report must disclose the name, address, and registration number if registered
with the board of each political committee, political fund, principal campaign committee,
local candidate, or party unit to which contributions have been made that aggregate in excess
of $200 within the year and the amount and date of each contribution. The report must list
on separate schedules any contributions made to state candidates' principal campaign
committees and any contributions made to local candidates.

deleted text begin (l) deleted text end new text begin (m) new text end The report must disclose the sum of all contributions made by the reporting entity
during the reporting period and must separately disclose the sum of all contributions made
to local candidates by the reporting entity during the reporting period.

deleted text begin (m) deleted text end new text begin (n) new text end The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom noncampaign disbursements have
been made that aggregate in excess of $200 within the year by or on behalf of the reporting
entity and the amount, date, and purpose of each noncampaign disbursement, including an
explanation of how the expenditure was used.

deleted text begin (n) deleted text end new text begin (o) new text end The report must disclose the sum of all noncampaign disbursements made within
the year by or on behalf of the reporting entity.

deleted text begin (o) deleted text end new text begin (p) new text end The report must disclose the name and address of a nonprofit corporation that
provides administrative assistance to a political committee or political fund as authorized
by section 211B.15, subdivision 17, the type of administrative assistance provided, and the
aggregate fair market value of each type of assistance provided to the political committee
or political fund during the reporting period.

deleted text begin (p) deleted text end new text begin (q) new text end Legislative, statewide, and judicial candidates, party units, and political committees
and funds must itemize contributions that in aggregate within the year exceed $200 for
legislative or statewide candidates or more than $500 for ballot questions on reports submitted
to the board. The itemization must include the date on which the contribution was received,
the individual or association that provided the contribution, and the address of the contributor.
Additionally, the itemization for a donation in kind must provide a description of the item
or service received. Contributions that are less than the itemization amount must be reported
as an aggregate total.

deleted text begin (q) deleted text end new text begin (r) new text end Legislative, statewide, and judicial candidates, party units, political committees
and funds, and committees to promote or defeat a ballot question must itemize expenditures
and noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
submitted to the board. The itemization must include the date on which the committee made
or became obligated to make the expenditure or disbursement, the name and address of the
vendor that provided the service or item purchased, and a description of the service or item
purchased, including an explanation of how the expenditure was used. Expenditures and
noncampaign disbursements must be listed on the report alphabetically by vendor.

Sec. 5.

Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:

Subd. 4.

Refund receipt forms; penalty.

(a) The board must make available to a political
party on request and to any 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) if the contribution is to a candidate, that the candidate 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.

(b) The willful issuance of an official refund receipt form or a facsimile of one to any
of the candidate's contributors by a candidate or treasurer of a candidate who did not sign
an agreement under this section is subject to a civil penalty of up to $3,000 imposed by the
board.

(c) The willful issuance of an official refund receipt form or a facsimile to an individual
not eligible to claim a refund under section 290.06, subdivision 23, is subject to a civil
penalty of up to $3,000 imposed by the board.

(d) A violation of paragraph (b) or (c) is a misdemeanor.

new text begin (e) A candidate or political party must not issue refund receipt forms after December
31, 2027.
new text end

Sec. 6.

Minnesota Statutes 2024, section 10A.34, subdivision 4, is amended to read:

Subd. 4.

Penalty for violations of chapter new text begin 10B or new text end 211B under board's jurisdiction.

If
a civil penalty is not specified in new text begin chapter 10B, or new text end a section of chapter 211B brought under
the board's jurisdiction by section 10A.022, subdivision 3, the board may impose a civil
penalty of up to $3,000.

Sec. 7.

new text begin [10B.01] DEFINITIONS.
new text end

new text begin (a) For purposes of this chapter, the terms defined in this section have the meanings
given. The definitions in section 10A.01 apply to this chapter unless otherwise provided.
new text end

new text begin (b) "Donor" means an individual who receives a civic fund credit pursuant to the
provisions of this chapter.
new text end

new text begin (c) "Minnesota Civic Fund program" or "civic fund" or "program" means the program
established in this chapter.
new text end

new text begin (d) "Qualified candidate or political party" means a candidate or political party that is
qualified under section 10B.07 to participate in the civic fund program.
new text end

Sec. 8.

new text begin [10B.02] MINNESOTA CIVIC FUND CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Automatic participation. new text end

new text begin No later than February 1 of each year, the
secretary of state must provide the board with the voter public information list described in
section 201.091. No later than March 1 of each year, the board must provide notice to each
person on the list about the civic fund program. The notice must include the information in
subdivision 3. Unless the person requests that the notification be delivered by email, the
board must mail the notice to the address provided in the list.
new text end

new text begin Subd. 2. new text end

new text begin Optional participation. new text end

new text begin Any individual who does not have an active registration
in the statewide voter registration system but who resides in Minnesota and is a citizen or
lawful permanent resident may submit a written request to the board to participate in the
program. A request under this subdivision may be submitted to the board between January
1 and July 1 of each year. The board must prescribe a form for this purpose. At a minimum,
the form must require: the person's name, the person's mailing address in Minnesota, an
option to provide an email address, and an attestation that the person is eligible to participate
in the program. Upon receiving a properly completed form, the board must send a notice
in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin (a) The notice must include:
new text end

new text begin (1) the person's name;
new text end

new text begin (2) a unique civic fund credit identification number;
new text end

new text begin (3) an explanation that the person may direct the credit to a qualifying principal campaign
committee or political party unit in increments of $25, and instructions on how to do so;
new text end

new text begin (4) a statement that the credit has no cash value, is not transferable, and may be donated
only as provided by the laws and rules governing the program;
new text end

new text begin (5) instructions on how to request future communications regarding the civic fund
program be sent by email; and
new text end

new text begin (6) any other information the board finds will assist donors in fully participating in the
program.
new text end

new text begin (b) The notice must be mailed to the address on the voter public information list provided
to the board, unless:
new text end

new text begin (1) the person makes a written request to the board that the notice be delivered by email
and provides an email address. The email address does not have to match the email address
on the person's voter registration record;
new text end

new text begin (2) the person makes a written request to the board that the notice be delivered to a
different mailing address, provided that the address is located in Minnesota; or
new text end

new text begin (3) the person opts in to the program pursuant to subdivision 2, in which case the notice
must be sent to the email or mailing address provided by the person.
new text end

Sec. 9.

new text begin [10B.04] ASSIGNMENT OF CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Assignment. new text end

new text begin (a) Civic fund credits must be assigned as provided in this
section. A donor may assign civic fund credits to a qualified candidate or political party
electronically, by mail, or in person as provided in this section. A donor may only assign a
civic fund credit to a qualified candidate who represents the address or location where the
donor maintains residence. A donor must assign civic fund credits in $25 increments.
new text end

new text begin (b) At the time a credit is assigned, the donor must provide: the donor's name, the donor's
address of residence or physical description of the location of their residence, the donor's
mailing address or email address to which the notice under section 10B.02 was sent, the
donor's unique civic fund identification number, and the amount of the donation in $25
increments. The donor must sign to acknowledge that they have the right to donate the credit
and have not exceeded $100 in civic credit donations.
new text end

new text begin (c) A donor may be assisted in assigning a civic fund credit by a person of the donor's
choosing, except by an agent of the donor's employer or union.
new text end

new text begin Subd. 2. new text end

new text begin Deadline for assignment. new text end

new text begin A civic fund credit must be assigned to a qualified
candidate or political party unit no later than 30 days following the date of the next state
general election occurring after the credit was issued.
new text end

new text begin Subd. 3. new text end

new text begin Assignment is irrevocable. new text end

new text begin The valid assignment of a credit is irrevocable. In
making an assignment, the holder of the credit assumes the risk that the credit may not be
redeemed by the candidate or political party unit to which it is assigned.
new text end

new text begin Subd. 4. new text end

new text begin Chapter 325L applies. new text end

new text begin Chapter 325L applies to civic fund credits assigned,
delivered, or submitted for redemption under this chapter in an electronic format.
new text end

Sec. 10.

new text begin [10B.05] NO CASH VALUE.
new text end

new text begin Civic fund credits have no cash value and are not assets, income, or the property of the
holder to which a credit is issued.
new text end

Sec. 11.

new text begin [10B.06] PROHIBITIONS.
new text end

new text begin Assignment or transfer of a civic fund credit for cash or other consideration is prohibited.
A person may not offer to purchase, buy, or sell a credit and may not transfer it as a gift to
any other person. A credit may not be assigned by proxy, power of attorney, or agent.
new text end

Sec. 12.

new text begin [10B.07] QUALIFICATION OF CANDIDATES AND POLITICAL
PARTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Candidate qualification. new text end

new text begin (a) To be qualified for assignment or redemption
of a civic fund credit, a candidate must, as of the time the credit is redeemed:
new text end

new text begin (1) have designated a principal campaign committee that is currently registered under
chapter 10A;
new text end

new text begin (2) be seeking an office for which voluntary spending limits are specified in section
10A.25;
new text end

new text begin (3) have signed and be currently bound by an agreement governed by section 10A.322;
and
new text end

new text begin (4) have collected the requisite number of small contributions as provided in subdivision
2.
new text end

new text begin (b) A candidate is no longer qualified to receive by assignment or redeem a credit if:
new text end

new text begin (1) the candidate does not file for office;
new text end

new text begin (2) the candidate fails to advance to a general election following a primary election for
the office to which the candidate is seeking election; or
new text end

new text begin (3) the candidate is determined to be in violation of the terms of the agreement to limit
campaign expenditures provided in section 10A.322.
new text end

new text begin Subd. 2. new text end

new text begin Small contributions. new text end

new text begin The candidate must have collected contributions from
individuals eligible to participate in the program who maintain residence in the area
represented by the candidate in at least the amount indicated for the office sought, counting
only the first $50 received from each contributor, excluding in-kind contributions, as follows:
new text end

new text begin (1) candidates for governor and lieutenant governor running together, $35,000;
new text end

new text begin (2) candidates for attorney general, $15,000;
new text end

new text begin (3) candidates for secretary of state and state auditor, separately, $6,000;
new text end

new text begin (4) candidates for the senate, $3,000; and
new text end

new text begin (5) candidates for the house of representatives, $1,500.
new text end

new text begin Subd. 3. new text end

new text begin Political party unit qualification. new text end

new text begin To be qualified for assignment or redemption
of a civic fund credit, a political party, as of the time the credit is redeemed, must be a unit
of a major political party unit as defined in section 200.02, subdivision 7, or a minor political
party unit qualifying for inclusion on the income tax or property tax refund form under
section 10A.31, subdivision 3a.
new text end

Sec. 13.

new text begin [10B.08] REDEMPTION OF CREDITS; DISTRIBUTION OF
CONTRIBUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Redemption value cap. new text end

new text begin (a) As used in this section, the "redemption
value cap" means the maximum aggregate dollar value of credits that may be redeemed by
qualified candidates and political parties in a calendar year.
new text end

new text begin (b) For calendar years 2025 and 2026, and each two-year period thereafter until an
increase is required under this paragraph, the redemption value cap for each year is an
amount equal to eight percent of the total dollar value of all credits issued by the board in
that year. If, as of December 31 of an even-numbered year, the dollar value of all credits
redeemed during that year and the immediately preceding odd-numbered year exceeds 75
percent of the aggregated redemption value cap for those two years, the redemption value
cap must be increased by an additional two percent of the total value of all credits issued
by the board each year, beginning in the next odd-numbered year and for every year
thereafter. The redemption value cap may be subsequently increased in two percent
increments according to the standards in this paragraph but may not exceed 16 percent of
the total value of credits issued unless otherwise expressly authorized by law. No later than
January 30 of each year, the board, in consultation with the commissioner of management
and budget, must certify the applicable redemption value cap that applies during that year.
new text end

new text begin Subd. 2. new text end

new text begin Redemption procedures. new text end

new text begin A qualified candidate or political party that has been
assigned a civic fund credit may submit it to the board for redemption as provided in this
section. A candidate may only redeem credits that, in the aggregate, equal no more than ...
percent of the spending limits in section 10A.25 for the applicable office. A political party
may only redeem credits that, in the aggregate, total no more than $........
new text end

new text begin Subd. 3. new text end

new text begin Verification. new text end

new text begin (a) The board must verify the following before redeeming a credit:
new text end

new text begin (1) the qualification of the receiving candidate or political party unit;
new text end

new text begin (2) the name of the person, the person's mailing address or email address, and the civic
fund credit identification number match the board's records;
new text end

new text begin (3) for credits being redeemed by legislative candidates, that the donor's address of
residence or physical description of the location of the donor's residence is located in the
area represented by the legislator;
new text end

new text begin (4) that the donor has not exceeded $100 in civic fund donations;
new text end

new text begin (5) whether redemption of the credit would result in the candidate receiving a contribution
in excess of the amounts authorized by law; and
new text end

new text begin (6) whether redemption of the credit would cause the total dollar value of redeemed
credits to exceed the redemption value cap.
new text end

new text begin (b) The board may require the assigned candidate or political party unit to submit
documents or records necessary to complete the verifications required by this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of contribution. new text end

new text begin Upon determination that the credit is valid for
redemption, the board must disburse the value of the credit to the assigned candidate's
principal campaign committee, to the treasurer of the assigned political party unit. The board
may adopt procedures for disbursement of the contribution through an electronic funds
transfer to the committee or party unit. These procedures are exempt from chapter 14, and
section 14.386 does not apply. A qualified candidate or political party must submit credits
for redemption on or before December 31 in the year in which the credit was issued.
new text end

new text begin Subd. 5. new text end

new text begin Effect of credits on contribution reporting and limits. new text end

new text begin The value of the credit,
once redeemed, must be recorded as a contribution made in the name of the person to whom
the credit is issued. Redeemed credits must be included in the calculation of that person's
contributions for purposes of reporting under section 10A.20, subdivision 3, and for purposes
of the contribution limits established in section 10A.27.
new text end

new text begin Subd. 6. new text end

new text begin Redemption and distribution schedule. new text end

new text begin The board must promptly verify all
assigned credits received by the board, regardless of the method of submission. The board
must redeem all properly verified credits and distribute contributions:
new text end

new text begin (1) no less than one time per week beginning 60 days prior to the date of a state primary
or state general election;
new text end

new text begin (2) to the extent practical, no less than one time per week during the campaign period
preceding a special primary or special general election as determined by the board; and
new text end

new text begin (3) during the rest of the year, no less than two times per month.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin Amounts necessary to redeem credits and administer the
program required under this chapter are appropriated annually from the general fund to the
board. The amount appropriated to the board for credit redemption may not exceed the
redemption value cap in any year.
new text end

Sec. 14.

new text begin [10B.09] USE OF CONTRIBUTION.
new text end

new text begin A contribution received by a principal campaign committee or political party under this
chapter may only be used for purposes authorized under chapter 10A or section 211B.12.
new text end

Sec. 15.

new text begin [10B.10] RETURN OF PROCEEDS.
new text end

new text begin A qualified candidate that has unspent proceeds from redeemed civic fund credits must
return the unspent funds to the board by January 31 in the year after the candidate was on
the general election ballot. A qualified political party that has unspent proceeds from
redeemed civic fund credits must return the unspent funds.
new text end

Sec. 16.

new text begin [10B.11] VIOLATIONS; ENFORCEMENT.
new text end

new text begin The board may make audits and investigations with respect to the requirements of this
chapter, consistent with the authority, procedures, and remedies provided in sections 10A.022
and 10A.34.
new text end

Sec. 17.

Minnesota Statutes 2024, section 289A.37, subdivision 2, is amended to read:

Subd. 2.

Erroneous refunds.

(a) Except as provided in paragraph (b), an erroneous
refund occurs when the commissioner issues a payment to a person that exceeds the amount
the person is entitled to receive under law. An erroneous refund is considered an
underpayment of tax on the date issued.

(b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:

(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section deleted text begin 290.06,
subdivision 23; deleted text end 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or

(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.

(c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.

(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under sections 289A.38 to 289A.382.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 16, 2028.
new text end

Sec. 18.

Minnesota Statutes 2024, section 289A.50, subdivision 1, is amended to read:

Subdivision 1.

General right to refund.

(a) Subject to the requirements of this section
and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
who files a written claim for refund will be refunded or credited the overpayment of the tax
determined by the commissioner to be erroneously paid.

(b) The claim must specify the name of the taxpayer, the date when and the period for
which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
was erroneously paid, the grounds on which a refund is claimed, and other information
relative to the payment and in the form required by the commissioner. An income tax, estate
tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
a claim for refund.

(c) When, in the course of an examination, and within the time for requesting a refund,
the commissioner determines that there has been an overpayment of tax, the commissioner
shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
If the amount of the overpayment is less than $1, the commissioner is not required to refund.
In these situations, the commissioner does not have to make written findings or serve notice
by mail to the taxpayer.

(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
care exceeds the tax against which the credit is allowable, the amount of the excess is
considered an overpayment. deleted text begin The refund allowed by section 290.06, subdivision 23, is also
considered an overpayment. deleted text end The requirements of section 270C.33 do not apply to the
refunding of such an overpayment shown on the original return filed by a taxpayer.

(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
penalties, and interest reported in the return of the entertainment entity or imposed by section
290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
$1, the commissioner need not refund that amount.

(f) If the surety deposit required for a construction contract exceeds the liability of the
out-of-state contractor, the commissioner shall refund the difference to the contractor.

(g) An action of the commissioner in refunding the amount of the overpayment does not
constitute a determination of the correctness of the return of the taxpayer.

(h) There is appropriated from the general fund to the commissioner of revenue the
amount necessary to pay refunds allowed under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 16, 2028.
new text end

Sec. 19.

Minnesota Statutes 2024, section 290.01, subdivision 6, is amended to read:

Subd. 6.

Taxpayer.

The term "taxpayer" means any person or corporation subject to a
tax imposed by this chapter. deleted text begin For purposes of section 290.06, subdivision 23, the term
"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 16, 2028.
new text end

Sec. 20.

Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:

Subd. 23.

Refund of contributions to political parties and candidates.

(a) new text begin Until April
15, 2028, new text end a taxpayer may claim a refund equal to the amount of the taxpayer's contributions
made in the calendar year to candidates and to a political party. The maximum refund for
an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
$150. A refund of a contribution is allowed only if the taxpayer files a form required by the
commissioner and attaches to the form a copy of an official refund receipt form issued by
the candidate or party and signed by the candidate, the treasurer of the candidate's principal
campaign committee, or the chair or treasurer of the party unit, after the contribution was
received. The receipt forms must be numbered, and the data on the receipt that are not public
must be made available to the campaign finance and public disclosure board upon its request.
A claim must be filed with the commissioner no sooner than January 1 of the calendar year
in which the contribution was made and no later than April 15 of the calendar year following
the calendar year in which the contribution was made. A taxpayer may file only one claim
per calendar year. Amounts paid by the commissioner after June 15 of the calendar year
following the calendar year in which the contribution was made must include interest at the
rate specified in section 270C.405.

(b) No refund is allowed under this subdivision for a contribution to a candidate unless
the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section
10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section
10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not
sign an agreement but accepts a contribution for which the contributor improperly claims
a refund.

(c) For purposes of this subdivision, "political party" means a major political party as
defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization
within each house of the legislature, the state party organization, and the party organization
within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
candidate for judicial office.

"Contribution" means a gift of money.

(d) The commissioner shall make copies of the form available to the public and candidates
upon request.

(e) The following data collected or maintained by the commissioner under this subdivision
are private: the identities of individuals claiming a refund, the identities of candidates to
whom those individuals have made contributions, and the amount of each contribution.

(f) The commissioner shall report to the campaign finance and public disclosure board
by each August 1 a summary showing the total number and aggregate amount of political
contribution refunds made on behalf of each candidate and each political party. These data
are public.

(g) The amount necessary to pay claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.

(h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
the commissioner may accept the number on the official receipt as documentation that a
contribution was made rather than the actual receipt as required by paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21. new text begin RULEMAKING.
new text end

new text begin The Campaign Finance and Public Disclosure Board may adopt rules using the expedited
rulemaking process in section 14.389 to establish rules related to the Minnesota Civic Fund
in chapter 10B.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22. new text begin PUBLIC EDUCATION CAMPAIGN.
new text end

new text begin (a) The Campaign Finance and Public Disclosure Board must conduct a public education
campaign to spread awareness of the Minnesota Civic Fund program under Minnesota
Statutes, chapter 10B, with a focus on lower-income communities. The board may make
grants to community organizations for community outreach and public education purposes.
new text end

new text begin (b) $....... in fiscal year 2026 is appropriated from .... to the Campaign Finance and Public
Disclosure Board for purposes of this section. This is a onetime appropriation.
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 10A.322, subdivision 4; 13.4967, subdivision 2; and
290.06, subdivision 23, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2028.
new text end

Sec. 24. new text begin EFFECTIVE DATE; RULEMAKING.
new text end

new text begin Unless otherwise specified, this act is effective January 1, 2026.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-03239

10A.322 SPENDING LIMIT AGREEMENTS.

Subd. 4.

Refund receipt forms; penalty.

(a) The board must make available to a political party on request and to any 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) if the contribution is to a candidate, that the candidate 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.

(b) The willful issuance of an official refund receipt form or a facsimile of one to any of the candidate's contributors by a candidate or treasurer of a candidate who did not sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed by the board.

(c) The willful issuance of an official refund receipt form or a facsimile to an individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to a civil penalty of up to $3,000 imposed by the board.

(d) A violation of paragraph (b) or (c) is a misdemeanor.

13.4967 OTHER TAX DATA CODED ELSEWHERE.

Subd. 2.

Political contribution refund.

Certain political contribution refund data in the Revenue Department are classified under section 290.06, subdivision 23.

290.06 RATES OF TAX; CREDITS.

Subd. 23.

Refund of contributions to political parties and candidates.

(a) A taxpayer may claim a refund equal to the amount of the taxpayer's contributions made in the calendar year to candidates and to a political party. The maximum refund for an individual must not exceed $75 and for a married couple, filing jointly, must not exceed $150. A refund of a contribution is allowed only if the taxpayer files a form required by the commissioner and attaches to the form a copy of an official refund receipt form issued by the candidate or party and signed by the candidate, the treasurer of the candidate's principal campaign committee, or the chair or treasurer of the party unit, after the contribution was received. The receipt forms must be numbered, and the data on the receipt that are not public must be made available to the campaign finance and public disclosure board upon its request. A claim must be filed with the commissioner no sooner than January 1 of the calendar year in which the contribution was made and no later than April 15 of the calendar year following the calendar year in which the contribution was made. A taxpayer may file only one claim per calendar year. Amounts paid by the commissioner after June 15 of the calendar year following the calendar year in which the contribution was made must include interest at the rate specified in section 270C.405.

(b) No refund is allowed under this subdivision for a contribution to a candidate unless the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section 10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section 10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not sign an agreement but accepts a contribution for which the contributor improperly claims a refund.

(c) For purposes of this subdivision, "political party" means a major political party as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization within each house of the legislature, the state party organization, and the party organization within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a candidate for judicial office.

"Contribution" means a gift of money.

(d) The commissioner shall make copies of the form available to the public and candidates upon request.

(e) The following data collected or maintained by the commissioner under this subdivision are private: the identities of individuals claiming a refund, the identities of candidates to whom those individuals have made contributions, and the amount of each contribution.

(f) The commissioner shall report to the campaign finance and public disclosure board by each August 1 a summary showing the total number and aggregate amount of political contribution refunds made on behalf of each candidate and each political party. These data are public.

(g) The amount necessary to pay claims for the refund provided in this section is appropriated from the general fund to the commissioner of revenue.

(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, the commissioner may accept the number on the official receipt as documentation that a contribution was made rather than the actual receipt as required by paragraph (a).