HF 1533

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/02/2011 03:09pm

A bill for an act
relating to campaign finance; changing certain procedures and requirements
of the Campaign Finance and Public Disclosure Board; amending Minnesota
Statutes 2010, sections 10A.01, by adding subdivisions; 10A.02, subdivisions
9, 10, 11, 12, 13; 10A.105, subdivision 1; 10A.12, subdivisions 1, 1a, 2;
10A.121, subdivision 1; 10A.14, subdivision 1, by adding a subdivision; 10A.20,
subdivisions 1, 2, 3, 4, 5, 6, 12, by adding a subdivision; 10A.24, by adding
a subdivision; 10A.27, subdivisions 14, 15; 10A.31, subdivision 7; 10A.315;
repealing Minnesota Rules, parts 4501.0500, subpart 2, item A; 4503.0200,
subpart 6; 4503.0500, subpart 8; 4503.1700; 4512.0100, subparts 2, 4.

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

Section 1.

Minnesota Statutes 2010, section 10A.01, is amended by adding a
subdivision to read:

new text begin Subd. 7c. new text end

new text begin Ballot question political committee. new text end

new text begin "Ballot question political
committee" means a political committee that makes only expenditures to promote or defeat
a ballot question and disbursements permitted under section 10A.121, subdivision 1.
new text end

Sec. 2.

Minnesota Statutes 2010, section 10A.01, is amended by adding a subdivision
to read:

new text begin Subd. 7d. new text end

new text begin Ballot question political fund. new text end

new text begin "Ballot question political fund" means
a political fund that makes only expenditures to promote or defeat a ballot question and
disbursements permitted under section 10A.121, subdivision 1.
new text end

Sec. 3.

Minnesota Statutes 2010, section 10A.02, subdivision 9, is amended to read:

Subd. 9.

Documents; information.

The executive director must inspect all material
filed with the board as promptly as necessary to comply with this chapter deleted text begin and deleted text end new text begin , with new text end
other provisions of law requiring the filing of a document with the board new text begin , and with other
provisions of law under the board's jurisdiction pursuant to subdivision 11 new text end . The executive
director must immediately notify deleted text begin the deleted text end new text begin an new text end individual deleted text begin required to file a document with the
board deleted text end if a written complaint is filed with the board alleging, or it otherwise appears, that a
document filed with the board is inaccurate or does not comply with this chapter, or that
the individual has failed to file a document required by this chapter new text begin or has failed to comply
with this chapter or other provisions under the board's jurisdiction pursuant to subdivision
11 new text end . deleted text begin The executive director may provide an individual required to file a document under
this chapter with factual information concerning the limitations on corporate campaign
contributions imposed by section 211B.15.
deleted text end

Sec. 4.

Minnesota Statutes 2010, section 10A.02, subdivision 10, is amended to read:

Subd. 10.

Audits and investigations.

The board may make audits and
investigations new text begin , impose statutory civil penalties, and issue orders for compliance new text end with
respect to deleted text begin statements and reports that are filed or that should have been filed under deleted text end new text begin
provisions of new text end this chapter new text begin and provisions under the board's jurisdiction pursuant to
subdivision 11 new text end . In all matters relating to its official duties, the board has the power to issue
subpoenas and cause them to be served. If a person does not comply with a subpoena,
the board may apply to the District Court of Ramsey County for issuance of an order
compelling obedience to the subpoena. A person failing to obey the order is punishable by
the court as for contempt.

Sec. 5.

Minnesota Statutes 2010, section 10A.02, subdivision 11, is amended to read:

Subd. 11.

Violations; enforcement.

(a) The board may investigate any alleged
violation of this chapter. new text begin The board may also investigate an alleged violation of section
211B.04, 211B.12, or 211B.15 by or related to a candidate, treasurer, principal campaign
committee, political committee, political fund, or party unit, as those terms are defined in
this chapter. new text end The board must investigate any violation that is alleged in a written complaint
filed with the board and must within 30 days after the filing of the complaint make a public
finding of whether there is probable cause to believe a violation has occurred, except that
if the complaint alleges a violation of section 10A.25 or 10A.27, the board must either
enter a conciliation agreement or make a public finding of whether there is probable cause,
within 60 days after the filing of the complaint. The deadline for action on a written
complaint may be extended by majority vote of the board.

(b) Within a reasonable time after beginning an investigation of an individual
or association, the board must notify the individual or association of the fact of the
investigation. The board must not make a finding of whether there is probable cause to
believe a violation has occurred without notifying the individual or association of the
nature of the allegations and affording an opportunity to answer those allegations.

(c) A hearing or action of the board concerning a complaint or investigation other
than a finding concerning probable cause or a conciliation agreement is confidential.
Until the board makes a public finding concerning probable cause or enters a conciliation
agreement:

(1) a member, employee, or agent of the board must not disclose to an individual
information obtained by that member, employee, or agent concerning a complaint or
investigation except as required to carry out the investigation or take action in the matter
as authorized by this chapter; and

(2) an individual who discloses information contrary to this subdivision is subject
to a civil penalty imposed by the board of up to $1,000.

Sec. 6.

Minnesota Statutes 2010, section 10A.02, subdivision 12, is amended to read:

Subd. 12.

Advisory opinions.

(a) The board may issue and publish advisory
opinions on the requirements of this chapter new text begin and of those sections listed in subdivision 11
new text end based upon real or hypothetical situations. An application for an advisory opinion may be
made only by an individual or association who new text begin is subject to chapter 10A and who new text end wishes to
use the opinion to guide the individual's or the association's own conduct. The board must
issue written opinions on all such questions submitted to it within 30 days after receipt of
written application, unless a majority of the board agrees to extend the time limit.

(b) A written advisory opinion issued by the board is binding on the board in a
subsequent board proceeding concerning the person making or covered by the request and
is a defense in a judicial proceeding that involves the subject matter of the opinion and is
brought against the person making or covered by the request unless:

(1) the board has amended or revoked the opinion before the initiation of the board
or judicial proceeding, has notified the person making or covered by the request of its
action, and has allowed at least 30 days for the person to do anything that might be
necessary to comply with the amended or revoked opinion;

(2) the request has omitted or misstated material facts; or

(3) the person making or covered by the request has not acted in good faith in
reliance on the opinion.

(c) A request for an opinion and the opinion itself are nonpublic data. The board,
however, may publish an opinion or a summary of an opinion, but may not include in the
publication the name of the requester, the name of a person covered by a request from an
agency or political subdivision, or any other information that might identify the requester,
unless the person consents to the inclusion.

Sec. 7.

Minnesota Statutes 2010, section 10A.02, subdivision 13, is amended to read:

Subd. 13.

Rules.

Chapter 14 applies to the board. The board may adopt rules to
carry out the purposes of this chapter new text begin and those sections listed in subdivision 11 new text end .

Sec. 8.

Minnesota Statutes 2010, section 10A.105, subdivision 1, is amended to read:

Subdivision 1.

Single committee.

A candidate must not accept contributions from a
source, other than self, in aggregate in excess of deleted text begin $100 deleted text end new text begin $250 new text end or accept a public subsidy
unless the candidate designates and causes to be formed a single principal campaign
committee for each office sought. A candidate may not authorize, designate, or cause to be
formed any other political committee bearing the candidate's name or title or otherwise
operating under the direct or indirect control of the candidate. However, a candidate may
be involved in the direct or indirect control of a party unit.

Sec. 9.

Minnesota Statutes 2010, section 10A.12, subdivision 1, is amended to read:

Subdivision 1.

When required new text begin for contributions and approved expenditures new text end .

An
association other than a political committee or party unit may not contribute more than
deleted text begin $100 deleted text end new text begin $250 new text end in aggregate in any deleted text begin one deleted text end new text begin calendar new text end year to candidates, political committees, or
party units or make deleted text begin any deleted text end approved deleted text begin or independent expenditure or expenditure to promote
or defeat a ballot question deleted text end new text begin expenditures of more than $250 in aggregate in any calendar
year new text end unless the contribution or expenditure is made deleted text begin from deleted text end new text begin through new text end a political fund.

Sec. 10.

Minnesota Statutes 2010, section 10A.12, subdivision 1a, is amended to read:

Subd. 1a.

When required for independent expenditures new text begin or ballot questions new text end .

An
association other than a political committee that makes only independent expenditures
deleted text begin and disbursements permitted under section 10A.121, subdivision 1, deleted text end new text begin or expenditures to
promote or defeat a ballot question new text end must do so deleted text begin by forming and registering deleted text end new text begin through new text end an
independent expenditure new text begin or ballot question new text end political fund if the new text begin independent new text end deleted text begin expenditure is
in excess of $100 deleted text end new text begin expenditures aggregate more than $1,000 in a calendar year or if the
expenditures to promote or defeat a ballot question aggregate more than $1,000 in a
calendar year, new text end or by contributing to an existing independent expenditure new text begin or ballot question
new text end political committee or deleted text begin political deleted text end fund.

Sec. 11.

Minnesota Statutes 2010, section 10A.12, subdivision 2, is amended to read:

Subd. 2.

Commingling prohibited.

The contents of a political fund may not be
commingled with other funds or with the personal funds of an officer or member of the
fund. new text begin It is not commingling for an association using only its own general treasury money
to make expenditures and disbursements permitted under section 10A.121, subdivision 1,
directly from the depository used for its general treasury money.
new text end

Sec. 12.

Minnesota Statutes 2010, section 10A.121, subdivision 1, is amended to read:

Subdivision 1.

Permitted disbursements.

An independent expenditure political
committee or deleted text begin an independent expenditure political fund, in addition to making independent
expenditures, deleted text end new text begin a ballot question political committee or fund new text end may:

(1) pay costs associated with its fund-raising and general operations;

(2) pay for communications that do not constitute contributions or approved
expenditures; deleted text begin and
deleted text end

(3) make contributions to deleted text begin other deleted text end independent expenditure deleted text begin political committees deleted text end or
deleted text begin independent expenditure political funds. deleted text end new text begin ballot question political committees or funds;
new text end

new text begin (4) make independent expenditures;
new text end

new text begin (5) make expenditures to promote or defeat ballot questions;
new text end

new text begin (6) return a contribution to its source; and
new text end

new text begin (7) record bookkeeping entries transferring an association's general treasury money
allocated for political committee or fund purposes back to the general treasury of the
association.
new text end

Sec. 13.

Minnesota Statutes 2010, section 10A.14, subdivision 1, is amended to read:

Subdivision 1.

First registration.

The treasurer of a political committee, political
fund, principal campaign committee, or party unit must register with the board by filing a
statement of organization no later than 14 days after the committee, fund, or party unit has
made a contribution, received contributions, or made expenditures in excess of deleted text begin $100 deleted text end new text begin $250 new text end ,
or by the end of the next business day after it has received a loan or contribution that must
be reported under section 10A.20, subdivision 5, whichever is earlier. new text begin This subdivision
does not apply to ballot question or independent expenditure political committees or
funds governed by subdivision 1a.
new text end

Sec. 14.

Minnesota Statutes 2010, section 10A.14, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Independent expenditure or ballot question political committees and
funds; first registration; reporting. new text end

new text begin (a) The treasurer of an independent expenditure
or ballot question political committee or fund must register with the board by filing a
statement of organization:
new text end

new text begin (1) no later than 14 days after the committee or the association registering the
political fund has:
new text end

new text begin (i) received aggregate contributions for independent expenditures of more than
$1,000 in a calendar year;
new text end

new text begin (ii) made aggregate independent expenditures of more than $1,000 in a calendar year;
new text end

new text begin (iii) received aggregate contributions for expenditures to promote or defeat a ballot
question of more than $1,000 in a calendar year; or
new text end

new text begin (iv) made aggregate expenditures to promote or defeat a ballot question of more
than $1,000 in a calendar year; or
new text end

new text begin (2) by the end of the next business day after it has received a loan or contribution
that must be reported under section 10A.20, subdivision 5, whichever is earlier.
new text end

new text begin (b) The treasurer of an independent expenditure or ballot question political
committee or fund must disclose in reports required by section 10A.20, subdivisions 2 and
5, those expenditures or contributions that required its registration under paragraph (a).
new text end

Sec. 15.

Minnesota Statutes 2010, section 10A.20, subdivision 1, is amended to read:

Subdivision 1.

First filing; duration.

The treasurer of a political committee,
political fund, principal campaign committee, or party unit must begin to file the
reports required by this section deleted text begin in deleted text end new text begin for new text end the first year it receives contributions or makes
expenditures deleted text begin in excess of $100 deleted text end new text begin that require it to register under section 10A.14 new text end and must
continue to file until the committee, fund, or party unit is terminated. The reports must
be filed electronically in a standards-based open format specified by the board. For
good cause shown, the board must grant exemptions to the requirement that reports be
filed electronically.

Sec. 16.

Minnesota Statutes 2010, section 10A.20, subdivision 2, is amended to read:

Subd. 2.

Time for filing.

(a) The reports must be filed with the board on or before
January 31 of each year and additional reports must be filed as required and in accordance
with paragraphs (b) to (d).

(b) In each year in which the name of the candidate is on the ballot, the report of the
principal campaign committee must be filed 15 days before a primary and ten days before
a general election, seven days before a special primary and a special election, and ten days
after a special election cycle. new text begin The requirement that a principal campaign committee file a
report ten days before a general election applies only to principal campaign committees of
candidates whose names will be on the general election ballot.
new text end

(c) In each general election year, a political committee or political fund must file
reports 28 and 15 days before a primary and 42 and ten days before a general election.
Beginning in 2012, reports required under this paragraph must also be filed 56 days before
a primary.

(d) In each general election year, a party unit must file reports 15 days before a
primary and ten days before a general election.

Sec. 17.

Minnesota Statutes 2010, section 10A.20, subdivision 3, is amended to read:

Subd. 3.

Contents of report.

new text begin The report required by this section must include each
of the items and categories listed in paragraphs (a) to (n) that is 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.
new text end

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

(b) The report must disclose the name, address, and employer, or occupation if
self-employed, of each individual or association that has made one or more contributions
to the reporting entity, including the purchase of tickets for a fund-raising effort, that in
aggregate within the year exceed $100 for legislative or statewide candidates or 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.

(c) The report must disclose the sum of contributions to the reporting entity during
the reporting period.

(d) The report must disclose each loan made or received by the reporting entity
within the year in aggregate in excess of $100, continuously reported until repaid or
forgiven, together with the name, address, occupation, and principal place of business,
if any, 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.

(e) The report must disclose each receipt over $100 during the reporting period not
otherwise listed under paragraphs (b) to (d).

(f) The report must disclose the sum of all receipts of the reporting entity during
the reporting period.

(g) The report must disclose the name and address of each individual or association
to whom aggregate expenditures, including approved expenditures, have been made by
or on behalf of the reporting entity within the year in excess of $100, together with the
amount, date, and purpose of each expenditure and the name and address of, and office
sought by, each candidate on whose behalf the expenditure was made, identification of the
ballot question that the expenditure was intended to promote or defeat, and in the case
of independent expenditures made in opposition to a candidate, the candidate's name,
address, and office sought. A reporting entity making an expenditure on behalf of more
than one candidate for state or legislative office must allocate the expenditure among the
candidates on a reasonable cost basis and report the allocation for each candidate.

(h) The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

(i) 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.

(j) The report must disclose the name and address of each political committee,
political fund, principal campaign committee, or party unit to which contributions have
been made that aggregate in excess of $100 within the year and the amount and date of
each contribution.

(k) The report must disclose the sum of all contributions made by the reporting
entity during the reporting period.

(l) The report must disclose the name and address of each individual or association
to whom noncampaign disbursements have been made that aggregate in excess of $100
within the year by or on behalf of the reporting entity and the amount, date, and purpose of
each noncampaign disbursement.

(m) The report must disclose the sum of all noncampaign disbursements made
within the year by or on behalf of the reporting entity.

(n) 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.

Sec. 18.

Minnesota Statutes 2010, section 10A.20, subdivision 4, is amended to read:

Subd. 4.

Period of report.

A report must cover the period from January 1 of the
reporting year to seven days before the filing date, except that the report due on January
31 must cover the period from deleted text begin the last day covered by the previous report deleted text end new text begin January 1 new text end to
December 31 new text begin of the reporting year new text end .

Sec. 19.

Minnesota Statutes 2010, section 10A.20, subdivision 5, is amended to read:

Subd. 5.

Preelection reports.

Any loan, contribution, or contributions to a political
committee or political fund from any one source totaling new text begin more than new text end $1,000 deleted text begin or more deleted text end , or
in a statewide election for judicial office, any loan, contribution, or contributions from
any one source totaling new text begin more than new text end $2,000 deleted text begin or more deleted text end , or in any deleted text begin judicial deleted text end district new text begin court judge
election any loan, contribution, or contributions from any one source new text end totaling new text begin more than
new text end $400 deleted text begin or more deleted text end , and any loan, contribution, or contributions to a candidate for constitutional
office or for the legislature from any one source totaling new text begin more than new text end 80 percent deleted text begin or more deleted text end
of the contribution limit for the office, received between the last day covered in the last
report before an election and the election must be reported to the board in one of the
following ways:

(1) in person by the end of the next business day after its receipt; or

(2) by electronic means sent within 24 hours after its receipt.

These loans and contributions must also be reported in the next required report.

This notice requirement does not apply with respect to a primary in which the
statewide or legislative candidate is unopposed new text begin or to a general election in which the
candidate's name is not on the general election ballot new text end .

The board must post the report on its Web site by the end of the next business day
after it is received.

Sec. 20.

Minnesota Statutes 2010, section 10A.20, subdivision 6, is amended to read:

Subd. 6.

Report new text begin by candidate new text end when no committee.

A candidate who does not
designate and cause to be formed a principal campaign committee deleted text begin and an individual deleted text end who
makes deleted text begin independent expenditures or deleted text end new text begin campaign new text end expenditures deleted text begin expressly advocating the
approval or defeat of a ballot question deleted text end in aggregate in excess of deleted text begin $100 deleted text end new text begin $250 new text end in a year must
file with the board a report containing the information required by subdivision 3. Reports
required by this subdivision must be filed deleted text begin on deleted text end new text begin by new text end the dates on which reports by committees,
funds, and party units deleted text begin are deleted text end new text begin must be new text end filed.

Sec. 21.

Minnesota Statutes 2010, section 10A.20, is amended by adding a subdivision
to read:

new text begin Subd. 6c. new text end

new text begin Report by individual making independent expenditures or
expenditures to promote or defeat a ballot question. new text end

new text begin An individual who makes
independent expenditures that aggregate more than $1,000 in a calendar year or
expenditures to promote or defeat a ballot question that aggregate more than $1,000 in
a calendar year must file with the board a report containing the information required by
subdivision 3. A report required by this subdivision must be filed by the date on which the
next report by political committees and political funds must be filed.
new text end

Sec. 22.

Minnesota Statutes 2010, section 10A.20, subdivision 12, is amended to read:

Subd. 12.

Failure to file; penalty.

If an individual fails to file a report required by
this section that is due January 31 deleted text begin within ten business days after the report was due deleted text end , the
board may impose a late filing fee of $25 per day, not to exceed $1,000, commencing
the day after the report was due.

If an individual fails to file a report required by this section that is due before a
primary or new text begin general new text end election deleted text begin within three days after the date due, regardless of whether the
individual has received any notice deleted text end , the board may impose a late filing fee of $50 per day,
not to exceed $1,000, commencing on the day after the date the statement was due.

The board must send notice by certified mail to an individual who fails to file a
report within ten business days after the report was due that the individual may be subject
to a civil penalty for failure to file the report. An individual who fails to file the report
within seven days after the certified mail notice was sent by the board is subject to a civil
penalty imposed by the board of up to $1,000.

Sec. 23.

Minnesota Statutes 2010, section 10A.24, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Termination of registration of a political fund. new text end

new text begin Notwithstanding
subdivision 1, an association that uses only its general treasury money for independent
expenditures or expenditures to promote or defeat a ballot question may terminate the
registration of its political fund by written notice to the board any time after the association
has complied with its reporting requirements under section 10A.20.
new text end

Sec. 24.

Minnesota Statutes 2010, section 10A.27, subdivision 14, is amended to read:

Subd. 14.

Contributions of business revenue.

An association may, if not prohibited
by other law, contribute revenue from the operation of a business to an independent
expenditure new text begin or ballot question new text end political committee or deleted text begin an independent expenditure political deleted text end
fund without complying with subdivision 13.

Sec. 25.

Minnesota Statutes 2010, section 10A.27, subdivision 15, is amended to read:

Subd. 15.

Contributions of dues or contribution revenue.

(a) An association may,
if not prohibited by other law, contribute revenue from membership dues or fees, or from
contributions received by the association to an independent expenditure new text begin or ballot question
new text end political committee or deleted text begin an independent expenditure political deleted text end fund without complying with
subdivision 13. Before the day when the recipient committee or fund's next report must
be filed with the board under section 10A.20, subdivision 2 or 5, an association that has
contributed new text begin more than new text end $5,000 deleted text begin or more deleted text end in aggregate to independent expenditure political
committees or funds during the calendar year new text begin or has contributed more than $5,000 in
aggregate to ballot question political committees or funds during the calendar year new text end must
provide in writing to the recipient's treasurer a statement that includes the name, address,
and amount attributable to each individual or association that paid the association dues or
fees, or made contributions to the association that, in total, aggregate new text begin more than new text end $1,000
deleted text begin or more deleted text end of the contribution from the association to the independent expenditure new text begin or ballot
question new text end political committee or fund. The statement must also include the total amount
of the contribution from individuals or associations not subject to itemization under this
section. The statement must be certified as true and correct by an officer of the donor
association.

(b) To determine the membership dues or fees, or contributions made by an individual
or association that exceed $1,000 of the contribution made by the donor association to the
independent expenditure political committee or fund, the donor association must:

(1) apply a pro rata calculation to all unrestricted dues, fees, and contributions
received by the donor association in the calendar year; or

(2) as provided in paragraph (c), identify the specific individuals or associations
whose dues, fees, or contributions are included in the contribution to the independent
expenditure political committee or fund.

(c) Dues, fees, or contributions from an individual or association must be identified
in a contribution to an independent expenditure political committee or fund under
paragraph (b), clause (2), if:

(1) the individual or association has specifically authorized the donor association to
use the individual's or association's dues, fees, or contributions for this purpose; or

(2) the individual's or association's dues, fees, or contributions to the donor
association are unrestricted and the donor association designates them as the source of the
subject contribution to the independent expenditure political committee or fund. After
a portion of an individual's or association's dues, fees, or contributions to the donor
association have been designated as the source of a contribution to an independent
expenditure political committee or fund, that portion of the individual's or association's
dues, fees, or contributions to the donor association may not be designated as the source of
any other contribution to an independent expenditure political committee or fund.

(d) For the purposes of this section, "donor association" means the association
contributing to an independent expenditure political committee or fund that is required to
provide a statement under paragraph (a).

Sec. 26.

Minnesota Statutes 2010, section 10A.31, subdivision 7, is amended to read:

Subd. 7.

Distribution of general account.

(a) As soon as the board has obtained
the results of the primary election from the secretary of state, but no later than one week
after certification of the primary results by the State Canvassing Board, the board must
distribute the available money in the general account, as certified by the commissioner of
revenue deleted text begin on September 1 deleted text end new text begin one week before the state primary new text end and according to allocations set
forth in subdivision 5, in equal amounts to all candidates of a major political party whose
names are to appear on the ballot in the general election and who:

(1) have signed a spending limit agreement under section 10A.322;

(2) have filed the affidavit of contributions required by section 10A.323; and

(3) were opposed in either the primary election or the general election.

(b) The public subsidy under this subdivision may not be paid in an amount that
would cause the sum of the public subsidy paid from the party account plus the public
subsidy paid from the general account to exceed 50 percent of the expenditure limit for the
candidate or 50 percent of the expenditure limit that would have applied to the candidate if
the candidate had not been freed from expenditure limits under section 10A.25, subdivision
10. Money from the general account not paid to a candidate because of the 50 percent limit
must be distributed equally among all other qualifying candidates for the same office until
all have reached the 50 percent limit or the balance in the general account is exhausted.

deleted text begin (c) A candidate must expend or become obligated to expend at least an amount equal
to 50 percent of the money distributed by the board under this subdivision no later than the
end of the final reporting period preceding the general election. Otherwise, the candidate
must repay to the board the difference between the amount the candidate spent or became
obligated to spend by the deadline and the amount distributed to the candidate under this
subdivision. The candidate must make the repayment no later than six months following
the general election. The candidate must reimburse the board for all reasonable costs,
including litigation costs, incurred in collecting any amount due.
deleted text end

deleted text begin If the board determines that a candidate has failed to repay money as required by this
paragraph, the board may not distribute any additional money to the candidate until the
entirety of the repayment has been made.
deleted text end

Sec. 27.

Minnesota Statutes 2010, section 10A.315, is amended to read:

10A.315 SPECIAL ELECTION SUBSIDY.

(a) Each eligible candidate for a legislative office in a special election must be
paid a public subsidy equal to the sum of:

(1) the party account money at the last general election for the candidate's party
for the office the candidate is seeking; and

(2) the general account money paid to a candidate for the same office at the last
general election.

(b) A candidate who wishes to receive this public subsidy must submit a signed
agreement under section 10A.322 to the board and must meet the contribution
requirements of section 10A.323. The special election subsidy must be distributed in the
same manner as money in the party and general accounts is distributed to legislative
candidates in a general election.

(c) The amount necessary to make the payments required by this section is
appropriated from the general fund new text begin for transfer new text end to the deleted text begin board deleted text end new text begin special elections account,
which must be established as an account in the state elections campaign fund new text end .

Sec. 28. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 4501.0500, subpart 2, item A; 4503.0200, subpart 6;
4503.0500, subpart 8; 4503.1700; and 4512.0100, subparts 2 and 4, new text end new text begin are repealed.
new text end