1.1 	A bill for an act
1.2 	relating to campaign finance; requiring and authorizing the campaign finance and 
1.3 	public disclosure board to impose enhanced penalties for various violations; 
1.4 	prohibiting the board from waiving enhanced penalties; depositing fee and civil 
1.5 	penalties into the state elections campaign account; providing definitions;amending 
1.6 	Minnesota Statutes 2024, sections 10A.01, by adding subdivisions; 10A.02, 
1.7 	subdivision 15; 10A.025, subdivisions 2, 3, 4, 5; 10A.12, subdivision 1b; 10A.14, 
1.8 	subdivision 4; 10A.20, subdivision 12; 10A.27, subdivision 13; 10A.29.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision 
1.11 	to read:
1.12 		Subd. 16d.Enhanced penalty. "Enhanced penalty" means a late fee or civil penalty 
1.13 	imposed by the board that applies after a $25,000 or $250,000 threshold is exceeded and is 
1.14 	determined using a multiplier or percentage under sections 10A.025, subdivision 2, 3, 4, or 
1.15 	5; 10A.12, subdivision 1b; 10A.14, subdivision 4; 10A.20, subdivision 12; 10A.244, 
1.16 	subdivision 4; 10A.27, subdivision 13; and 10A.29.

1.17 	Sec. 2. Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision to 
1.18 	read:
1.19 		Subd. 26c.Total contributions. "Total contributions" means the total of all contributions. 
1.20 	Contributions include all contributions received, in-kind contributions received, loans, and 
1.21 	any other types of contributions.

2.1 	Sec. 3. Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision to 
2.2 	read:
2.3 		Subd. 26d.Total disbursements. "Total disbursements" means the total of all 
2.4 	disbursements. Disbursements include expenditures, in-kind expenditures, approved 
2.5 	expenditures, contributions made, in-kind contributions made, independent expenditures, 
2.6 	noncampaign disbursements, electioneering communications, and any other types of 
2.7 	expenditures and disbursements.

2.8 	Sec. 4. Minnesota Statutes 2024, section 10A.02, subdivision 15, is amended to read:
2.9 		Subd. 15. Fees and penalties. (a) Upon written request, certified pursuant to section 
2.10 	10A.025, subdivision 2, the board must waive that portion of a late filing fee or a civil 
2.11 	penalty imposed for the late filing of a report or statement under this chapter for which the 
2.12 	requester demonstrates good cause for the late filing or submission.
2.13 	(b) Notwithstanding paragraph (a), the board must not waive any portion of an enhanced 
2.14 	penalty.
2.15 	(b)(c) The board must deposit all fees and civil penalties collected under this chapter 
2.16 	into the general fund in the state treasury account of the state elections campaign account 
2.17 	in the special revenue fund.

2.18 	Sec. 5. Minnesota Statutes 2024, section 10A.025, subdivision 2, is amended to read:
2.19 		Subd. 2.Penalty for false statements. (a) A report or statement required to be filed 
2.20 	under this chapter must be signed and certified as true by the individual required to file the 
2.21 	report. The signature may be an electronic signature consisting of a password assigned by 
2.22 	the board.
2.23 	(b) An individual shall must not sign and certify to be true a report or statement knowing 
2.24 	it contains false information or knowing it omits required information.
2.25 	(c) An individual shall must not knowingly provide false or incomplete information to 
2.26 	a treasurer with the intent that the treasurer will rely on that information in signing and 
2.27 	certifying to be true a report or statement.
2.28 	(d) The board must impose a civil penalty on a person who violates paragraph (b) or (c) 
2.29 	is subject to a civil penalty imposed by the board of. For reports that include contributions 
2.30 	and disbursements, the penalty is four times the sum of the following amounts that were 
2.31 	knowingly false or omitted: the beginning cash balance, total contributions, and total 
3.1 	disbursements. For all other reports, the penalty is up to $3,000. A violation of paragraph 
3.2 	(b) or (c) is a gross misdemeanor.
3.3 	(e) The board may must impose an additional civil penalty of up to $3,000 on the principal 
3.4 	campaign committee or candidate, party unit, political committee, or association that has a 
3.5 	political fund that is affiliated with an individual who violated paragraph (b) or (c) an 
3.6 	additional civil penalty of an amount equal to four times the amount of the beginning cash 
3.7 	balances, total contributions, and total disbursements that were knowingly false or omitted 
3.8 	from the report.

3.9 	Sec. 6. Minnesota Statutes 2024, section 10A.025, subdivision 3, is amended to read:
3.10 		Subd. 3.Record keeping; penalty. (a) A person required to file a report or statement 
3.11 	or who has accepted record-keeping responsibility for the filer must maintain records on 
3.12 	the matters required to be reported, including vouchers, canceled checks, bills, invoices, 
3.13 	worksheets, and receipts, that will provide in sufficient detail the necessary information 
3.14 	from which the filed reports and statements may be verified, explained, clarified, and checked 
3.15 	for accuracy and completeness. The person must keep the records available for audit, 
3.16 	inspection, or examination by the board or its authorized representatives for four years from 
3.17 	the date of filing of the reports or statements or of changes or corrections to them.
3.18 	(b) The board may must impose a civil penalty of up to $3,000 on a person who 
3.19 	knowingly violates this subdivision of an amount equal to four times the amount reflected 
3.20 	on the missing records.
3.21 	(c) The board may impose a separate civil penalty of up to $3,000 on the principal 
3.22 	campaign committee or candidate, party unit, political committee, or association that has a 
3.23 	political fund that is affiliated with an individual who violated this subdivision a separate 
3.24 	civil penalty of an amount equal to four times the amount reflected on the missing records.
3.25 	(c) (d) A knowing violation of this subdivision is a misdemeanor.

3.26 	Sec. 7. Minnesota Statutes 2024, section 10A.025, subdivision 4, is amended to read:
3.27 		Subd. 4.Changes and corrections. (a) Material changes in information previously 
3.28 	submitted and corrections to a report or statement must be reported in writing to the board 
3.29 	within ten days following the date of the event prompting the change or the date upon which 
3.30 	the person filing became aware of the inaccuracy. The change or correction must identify 
3.31 	the form and the paragraph containing the information to be changed or corrected. A request 
3.32 	from the board to a lobbyist to provide more detailed information about a specific subject 
4.1 	of interest disclosed on a lobbyist disbursement report is a change or correction governed 
4.2 	by this subdivision.
4.3 	(b) The board must impose a civil penalty on a person who willfully fails to report a 
4.4 	material change or correction is subject to a civil penalty imposed by the board of. For 
4.5 	reports that include contributions and disbursements, the penalty is four times the amount 
4.6 	of the required change or correction in the report. For all other reports, the penalty is up to 
4.7 	$3,000. A willful violation of this subdivision is a gross misdemeanor.
4.8 	(c) The board must send a written notice to any individual who fails to file a report 
4.9 	required by this subdivision. If the individual fails to file the required report within ten 
4.10 	business days after the notice was sent, the board may impose a late filing fee of $25 per 
4.11 	day up to $1,000 starting on the 11th day after the notice was sent.
4.12 	(d) The board may send an additional notice by certified mail to an individual who fails 
4.13 	to file a report within ten business days after the first notice was sent by the board. The 
4.14 	certified notice must state that if the individual does not file the requested report within ten 
4.15 	business days after the certified notice was sent, the individual may be subject to a civil 
4.16 	penalty for failure to file a report. an individual who fails to file a report required by this 
4.17 	subdivision within ten business days after the certified notice was sent by the board is subject 
4.18 	to a civil penalty imposed by the board of up to $1,000.

4.19 	Sec. 8. Minnesota Statutes 2024, section 10A.025, subdivision 5, is amended to read:
4.20 		Subd. 5.Reconciliation information; penalty. (a) An individual or association required 
4.21 	to file a report under this chapter must provide information requested by the board to 
4.22 	reconcile discrepancies between the report and reports filed by other individuals or 
4.23 	associations. The board's request for information must be in writing. If the individual or 
4.24 	association fails to provide the requested information within ten business days after the 
4.25 	request was sent, the board may impose a late filing fee of $25 per day up to $1,000.
4.26 	(b) The board may send notice by certified mail to an individual or association that has 
4.27 	not timely responded to the board's written request for reconciliation information. The 
4.28 	certified notice must state that if the individual or association does not respond to the board's 
4.29 	request for information within ten business days after the certified notice was sent, the 
4.30 	individual or association may be subject to a civil penalty for failure to provide information 
4.31 	to the board. an individual or association that does not provide the requested information 
4.32 	within ten business days after the certified notice was sent is subject to a civil penalty 
4.33 	imposed by the board of up to $1,000.
5.1 	(c) The board must impose a civil penalty on a person who willfully fails to cooperate 
5.2 	with the board to reconcile a report discrepancy is subject to a civil penalty imposed by the 
5.3 	board ofup to $3,000 in an amount equal to four times the discrepancy.

5.4 	Sec. 9. Minnesota Statutes 2024, section 10A.12, subdivision 1b, is amended to read:
5.5 		Subd. 1b.Penalty for noncompliant independent expenditure. An association that 
5.6 	makes an independent expenditure without complying with subdivision 1a is subject to a 
5.7 	civil penalty of up to four times the amount of the independent expenditure, but not to exceed 
5.8 	$25,000, except when the violation was intentional. When the violation is intentional, the 
5.9 	board must impose a civil penalty of ten times the amount of the independent expenditure.

5.10 	Sec. 10. Minnesota Statutes 2024, section 10A.14, subdivision 4, is amended to read:
5.11 		Subd. 4.Failure to file; penalty. (a) If an individual fails to file a statement required 
5.12 	by this section by the date that the statement was due, the board may impose a late filing 
5.13 	fee of $25 per day, not to exceed $1,000, starting on the day after the statement was due. If 
5.14 	a report filed with the board reflects total contributions or total expenditures of more than 
5.15 	$25,000  that were not timely disclosed due to a late registration statement, the board must 
5.16 	instead impose a late filing fee of ten percent of that total, per day, starting on the day after 
5.17 	the report was due.
5.18 	(b) The board must send notice by certified mail to any individual who fails to file a 
5.19 	statement within ten business days after the statement was due that the individual may be 
5.20 	subject to a civil penalty for failure to file the statement. an individual who fails to file the 
5.21 	statement within seven days after the certified mail notice was sent by the board is subject 
5.22 	to a civil penalty imposed by the board of up to $1,000. If a statement required by 
5.23 	subdivisions 1 and 1a is not filed within seven days after the certified mail notice was sent 
5.24 	by the board and a report filed with the board shows that the committee, fund, or party unit 
5.25 	has  total contributions or total disbursements in excess of $25,000 that were not timely 
5.26 	disclosed due to the late registration statement, the board must impose a civil penalty of an 
5.27 	amount equal to four times the amount of total contributions or total disbursements  that 
5.28 	were not timely disclosed, whichever is greater.

5.29 	Sec. 11. Minnesota Statutes 2024, section 10A.20, subdivision 12, is amended to read:
5.30 		Subd. 12.Failure to file; late fees; penalty. (a) If an individual or association fails to 
5.31 	file a report required by this section or section 10A.202, the board may impose a late filing 
5.32 	fee and a civil penalty as provided in this subdivision.
6.1 	(b) If a candidate, political committee, political fund, principal campaign committee, or 
6.2 	party unit fails to file a report required by this section that is due January 31, the board may 
6.3 	impose a late filing fee of $25 per day, not to exceed $1,000, commencing the day after the 
6.4 	report was due.
6.5 	(c) Except for reports governed by paragraph (b), if an individual, political committee, 
6.6 	political fund, principal campaign committee, party unit, or association fails to file a report 
6.7 	required by subdivision 2, 2a, or 5, 5a, 6, or 14, or by section 10A.202, the board may 
6.8 	impose a late filing fee of $50 per day, not to exceed $1,000, commencing on the day after 
6.9 	the date the statement report was due. If the total expenditures contributions or total 
6.10 	disbursements exceed $250,000 or the total contributions or total disbursements that occurred 
6.11 	during the reporting period exceeds were required to be disclosed for the first time exceed
6.12 	$25,000, then the board may must also impose a late filing fee of up to two ten percent of 
6.13 	the expenditures or disbursements total contributions or total disbursements, whichever is 
6.14 	greater, that should have been reported, per day, commencing on the day after the report 
6.15 	was due, not to exceed 100 percent of the amount that should have been reported.
6.16 	(d) If an individual, political committee, political fund, principal campaign committee, 
6.17 	party unit, or association has been assessed a late filing fee or civil penalty under this 
6.18 	subdivision during the prior four years, the board may impose a late filing fee, a civil penalty, 
6.19 	or both of up to twice the amount otherwise authorized by this subdivision. If an individual, 
6.20 	political committee, political fund, principal campaign committee, party unit, or association 
6.21 	has been assessed a late filing fee or civil penalty under this subdivision more than two 
6.22 	times during the prior four years, the board may impose a late filing fee or civil penalty, or 
6.23 	both, of up to three times the amount otherwise authorized by this subdivision. If a late 
6.24 	filing fee and civil penalty are related to the same report or statement, the late filing fee and 
6.25 	civil penalty count as a single penalty for purposes of this paragraph.
6.26 	(e) If an individual, political committee, political fund, principal campaign committee, 
6.27 	party unit, or association has been assessed an enhanced penalty during the prior four years, 
6.28 	the board must impose a late filing fee, a civil penalty, or both, of up to twice the amount 
6.29 	otherwise authorized by this subdivision. If an individual, political committee, political 
6.30 	fund, principal campaign committee, party unit, or association has been assessed an enhanced 
6.31 	penalty more than two times during the prior four years, the board must impose a late filing 
6.32 	fee, a civil penalty, or both, of up to three times the amount otherwise authorized by this 
6.33 	subdivision. If a late filing fee and civil penalty are related to the same report or statement, 
6.34 	the late filing fee and civil penalty count as a single penalty for purposes of this paragraph.
7.1 	(e) (f) Within ten business days after the report was due or receipt by the board of 
7.2 	information disclosing the potential failure to file a report required by this section, the board 
7.3 	must send notice by certified mail that the individual or association may be subject to a civil 
7.4 	penalty for failure to file the report. An individual who fails to file the report within seven 
7.5 	days after the certified mail notice was sent by the board is subject to a civil penalty imposed 
7.6 	by the board of up to $2,000 in addition to the late filing fees imposed by this subdivision.
7.7 	If the total contributions or total disbursements exceed $250,000 or the total contributions 
7.8 	or total disbursements that were required to be disclosed for the first time within the report 
7.9 	exceed $25,000, the board must impose a civil penalty of an amount equal to four times the 
7.10 	amount of the total contributions or total disbursements that should have been reported, 
7.11 	whichever is greater.

7.12 	Sec. 12. Minnesota Statutes 2024, section 10A.27, subdivision 13, is amended to read:
7.13 		Subd. 13.Unregistered association limit; statement; penalty. (a) The treasurer of a 
7.14 	political committee, political fund, principal campaign committee, or party unit must not 
7.15 	accept a contribution of more than $200 from an association not registered under this chapter 
7.16 	unless the contribution is accompanied by a statement that meets the disclosure and reporting 
7.17 	period requirements imposed by section 10A.20. The statement may be a written statement 
7.18 	or a government website where the disclosure report for the unregistered association may 
7.19 	be viewed. This statement must be certified as true and correct by an officer of the 
7.20 	contributing association. The committee, fund, or party unit that accepts the contribution 
7.21 	must include a copy of the written statement or website with the report that discloses the 
7.22 	contribution to the board.
7.23 	(b) An unregistered association may provide the statement required by this subdivision 
7.24 	to no more than three committees, funds, or party units in a calendar year a two-year election 
7.25 	cycle segment. Each statement must cover at least the 30 days immediately preceding and 
7.26 	including the date on which the contribution was made. An unregistered association or an 
7.27 	officer of it is subject to a civil penalty imposed by the board of up to $1,000, if the 
7.28 	association or its officer:
7.29 	(1) fails to provide a statement as required by this subdivision; or
7.30 	(2) fails to register after giving the statement required by this subdivision to more than 
7.31 	three committees, funds, or party units in a calendar year a two-year election cycle segment.
7.32 	If an association violates clause (2) and the total contributions during the election segment 
7.33 	exceed $25,000, the board must impose  on the association a civil penalty of an amount 
8.1 	equal to four times the amount contributed to all committees, funds, or party units in the 
8.2 	two-year election cycle segment.
8.3 	(c) The treasurer of a political committee, political fund, principal campaign committee, 
8.4 	or party unit who accepts a contribution in excess of $200 from an unregistered association 
8.5 	without the required disclosure statement is subject to a civil penalty up to four times the 
8.6 	amount in excess of $200.
8.7 	(d) This subdivision does not apply:
8.8 	(1) when a national political party contributes money to its state committee;
8.9 	(2) when a federal committee of a major or minor political party registered with the 
8.10 	board gives an in-kind contribution to the federal committee's state central committee or a 
8.11 	party organization within a house of the state legislature; or
8.12 	(3) to purchases by candidates for federal office of tickets to events or space rental at 
8.13 	events held by party units in this state (i) if the geographical area represented by the party 
8.14 	unit includes any part of the geographical area of the office that the federal candidate is 
8.15 	seeking and (ii) the purchase price is not more than that paid by other attendees or renters 
8.16 	of similar spaces.

8.17 	Sec. 13. Minnesota Statutes 2024, section 10A.29, is amended to read:
8.18 	10A.29 CIRCUMVENTION PROHIBITED.
8.19 	An individual or association that attempts to circumvent this chapter by redirecting a 
8.20 	contribution through, or making a contribution on behalf of, another individual or association 
8.21 	is guilty of a gross misdemeanor and subject to a civil penalty imposed by the board of up 
8.22 	to $3,000 an amount equal to four times the contribution.