HF 2116

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to elections; campaign finance; increasing
disclosure requirements; limiting contributions to
political committees, political funds, and political
party units; releasing a candidate from spending
limits in case of certain independent expenditures;
limiting independent expenditures by political party
units; amending Minnesota Statutes 2004, sections
10A.01, by adding a subdivision; 10A.14, subdivision
1; 10A.20, by adding subdivisions; 10A.25, by adding a
subdivision; 10A.28, subdivision 2; 10A.322,
subdivisions 2, 4, by adding a subdivision; 290.06,
subdivision 23; proposing coding for new law in
Minnesota Statutes, chapter 10A.

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

Section 1.

Minnesota Statutes 2004, section 10A.01, is
amended by adding a subdivision to read:

new text begin Subd. 16a. new text end

new text begin Electioneering communication. new text end

new text begin "Electioneering
communication" means a communication that refers to a clearly
identified candidate and is made within 60 days before a general
or special election or 30 days before a primary or special
primary for the office sought by the candidate. "Electioneering
communication" does not include:
new text end

new text begin (1) a communication appearing in a news story, commentary,
or editorial distributed by a broadcasting station or newspaper,
unless the broadcasting station or newspaper is owned or
controlled by a political party unit, political committee, or
candidate;
new text end

new text begin (2) a campaign expenditure; or
new text end

new text begin (3) an independent expenditure.
new text end

Sec. 2.

Minnesota Statutes 2004, 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 deleted text begin 14 days deleted text end new text begin 48 hours new text end after
the committee, fund, or party unit has made a contribution,
received contributions, or made expenditures in excess of $100.

Sec. 3.

new text begin [10A.165] COORDINATED ELECTIONEERING
COMMUNICATIONS; CONTRIBUTIONS; EXPENDITURES.
new text end

new text begin If an individual, political committee, political fund, or
political party unit makes an expenditure for an electioneering
communication as defined in section 10A.01, subdivision 16a,
that is coordinated with a principal campaign committee or
political party unit, the electioneering communication
constitutes a contribution to, and an expenditure by, the
principal campaign committee of the candidate named in the
electioneering communication or of the political party unit
whose candidate is named in the electioneering communication.
new text end

Sec. 4.

Minnesota Statutes 2004, section 10A.20, is
amended by adding a subdivision to read:

new text begin Subd. 6c. new text end

new text begin Electioneering communications. new text end

new text begin An individual,
political committee, political fund, or political party unit
that makes or contracts to make an expenditure for an
electioneering communication in an aggregate amount in excess of
$500 within 60 days before a general or special election or 30
days before a primary or special primary for the office sought
by the candidate identified in the electioneering communication
must, within 24 hours of making the expenditure, file a report
with the board containing the following information:
new text end

new text begin (1) the amount of each expenditure over $100, the name and
address of the person to whom the expenditure was made or
contracted to be made, and the purpose of the expenditure;
new text end

new text begin (2) the election or primary to which each electioneering
communication pertains and the name of any candidate to be
identified in the electioneering communication; and
new text end

new text begin (3) in the case of a report filed by an individual, the
name, address, and employer or occupation, if self-employed, of
the individual making or contracting to make the electioneering
communication.
new text end

new text begin An additional report containing the information specified
in this subdivision must be filed within 24 hours after each
time an expenditure for an electioneering communication in an
aggregate amount exceeding $500 is made or contracted to be made
within 60 days before a general or special election or 30 days
before a primary or special primary for the office sought by the
candidate.
new text end

Sec. 5.

Minnesota Statutes 2004, section 10A.20, is
amended by adding a subdivision to read:

new text begin Subd. 6d. new text end

new text begin Independent expenditures; board notification to
candidate. new text end

new text begin (a) An individual, political committee, political
party unit, or political fund must file a report with the board
each time the individual, political committee, political party
unit, or political fund makes or contracts to make, at any time
up to and including the 20th day before an election, independent
expenditures in an aggregate amount in excess of $500. The
report must be filed within 48 hours after initially making or
contracting to make such expenditures. An additional report
must be filed within 48 hours after each time an independent
expenditure in an aggregate amount in excess of $500 is made or
contracted to be made, up to and including the 20th day before
an election. The report must include the information required
to be reported under subdivision 3, paragraph (g), except that
if the expenditure is reported at the time it is contracted, the
report must include the contract amount. The report must also
indicate (1) the name and office sought by a candidate named in
the independent expenditure and (2) whether the independent
expenditure expressly advocates the candidate's election or the
defeat of an opponent of the candidate.
new text end

new text begin (b) An individual, political committee, political party
unit, or political fund must file a report with the board each
time the individual, political committee, political party unit,
or political fund makes or contracts to make, between the 19th
day and the last day before an election, an independent
expenditure in an aggregate amount in excess of $100. The
report must be filed within 24 hours after initially making or
contracting to make such expenditures. An additional report
must be filed within 24 hours after making or contracting to
make an independent expenditure in an aggregate amount in excess
of $100 at any time up to and including the 20th day before an
election. The report must include the information required to
be reported under subdivision 3, paragraph (g), except that if
the expenditure is reported at the time it is contracted, the
report must include the contract amount. The report must also
indicate (1) the name and office sought by a candidate named in
the independent expenditure and (2) whether the independent
expenditure expressly advocates the candidate's election or the
defeat of an opponent of the candidate.
new text end

new text begin (c) If the board receives one or more reports under this
subdivision that indicate aggregate independent expenditures in
excess of $500 have been made in a race, it must provide the
notice required in this paragraph. Within 24 hours after
receipt of one or more such reports, the board must notify a
candidate who has signed a spending limit agreement under
section 10A.322 and whose defeat is expressly advocated or whose
opponent's election is expressly advocated by the aggregate
independent expenditures, that the candidate is released from
spending limits but remains eligible for a public subsidy.
new text end

Sec. 6.

Minnesota Statutes 2004, section 10A.20, is
amended by adding a subdivision to read:

new text begin Subd. 6e. new text end

new text begin Encouraging voter participation. new text end

new text begin (a) An
individual or association that makes or contracts to make an
expenditure to encourage precinct caucus attendance, voter
registration, or voting, in an aggregate amount in excess of
$200 during a calendar year must, within 24 hours of making or
contracting to make such an expenditure, file a report with the
board containing:
new text end

new text begin (1) the amount of each expenditure over $100, the name and
address of the person to whom the expenditure was made or
contracted to be made, and the purpose of the expenditure; and
new text end

new text begin (2) the election or primary to which each expenditure
pertains.
new text end

new text begin (b) An additional report containing the information
specified in this subdivision must be filed within 24 hours
after each time an expenditure subject to this subdivision is
made or contracted to be made during the calendar year.
new text end

Sec. 7.

Minnesota Statutes 2004, section 10A.25, is
amended by adding a subdivision to read:

new text begin Subd. 11a. new text end

new text begin Effect of certain independent expenditures.
new text end

new text begin Upon receiving a notice from the board under section 10A.20,
subdivision 6d, paragraph (c), a candidate who has filed a
spending limit agreement under section 10A.322 is released from
spending limits and remains eligible to receive a public subsidy.
new text end

Sec. 8.

new text begin [10A.258] PARTY UNIT INDEPENDENT EXPENDITURE
LIMITS.
new text end

new text begin A political party unit that has signed an agreement under
section 10A.322 and participates in the political contribution
refund program must not make aggregate independent expenditures
in a race in excess of $2,000.
new text end

Sec. 9.

new text begin [10A.272] CONTRIBUTION LIMITS; POLITICAL PARTY
UNITS, POLITICAL COMMITTEES, AND POLITICAL FUNDS; RETURN OF
EXCESS CONTRIBUTIONS.
new text end

new text begin (a) A political committee or political fund must not accept
aggregate contributions made or delivered by any individual or
association in excess of $1,000 during a calendar year.
new text end

new text begin (b) A political party unit must not accept aggregate
contributions made or delivered by any individual or association
in excess of $500 during a calendar year.
new text end

new text begin (c) A political party unit must not accept a contribution
from a political committee, political fund, lobbyist, or large
contributor if the contribution will cause the aggregate
contributions from those types of contributors to exceed 20
percent of the total contributions accepted by the political
party unit during a calendar year. For purposes of this
paragraph, "large contributor" means an individual who
contributes an amount greater than $250.
new text end

new text begin (d) A political party unit, political committee, or
political fund that receives aggregate contributions in excess
of the amounts allowed by this section during a calendar year
must, not later than January 31 of the year following the year
when the excess contributions were received:
new text end

new text begin (1) return any excess amounts to the contributor; or
new text end

new text begin (2) make a payment to the board in the amount of the
aggregate excess contributions for deposit in the state general
fund.
new text end

Sec. 10.

Minnesota Statutes 2004, section 10A.28,
subdivision 2, is amended to read:

Subd. 2.

Exceeding contribution limits.

new text begin (a) new text end A political
committee, political fund, or principal campaign committee that
makes a contribution, or a candidate who permits the candidate's
principal campaign committee to accept contributions, in excess
of the limits imposed by section 10A.27 is subject to a civil
penalty of up to four times the amount by which the contribution
exceeded the limits.

new text begin (b) A political committee or political fund that makes a
contribution, or a political party unit, political committee, or
political fund that accepts any contribution in excess of the
limits imposed by section 10A.272 is subject to a civil penalty
of up to four times the amount by which the contribution
exceeded the limit.
new text end

Sec. 11.

Minnesota Statutes 2004, section 10A.322, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Political party agreement. new text end

new text begin As a condition of
issuing political contribution refund receipts under subdivision
4, a political party unit must sign and file with the board a
written agreement in which the political party unit agrees that
it will comply with section 10A.258. A political party unit may
obtain an agreement form from the board and must file the form
by September 1 preceding a general election in connection with
which the political party unit intends to issue refund receipt
forms. An agreement may not be filed after that date. Once
filed, an agreement may not be rescinded. The board must notify
the commissioner of revenue of any agreement filed under this
subdivision.
new text end

Sec. 12.

Minnesota Statutes 2004, section 10A.322,
subdivision 2, is amended to read:

Subd. 2.

How long agreement is effective.

new text begin (a) new text end The
agreement, insofar as it relates to the expenditure limits in
section 10A.25, as adjusted by section 10A.255, and the
contribution limit in section 10A.27, subdivision 10, remains
effective for candidates until the dissolution of the principal
campaign committee of the candidate or the end of the first
election cycle completed after the agreement was filed,
whichever occurs first.

new text begin (b) The agreement, insofar as it relates to the independent
expenditure limits in section 10A.258, remains effective for
political party units until the end of the first election cycle
completed after the agreement was filed.
new text end

Sec. 13.

Minnesota Statutes 2004, section 10A.322,
subdivision 4, is amended to read:

Subd. 4.

Refund receipt forms; penalty.

The board must
make available to a political party deleted text begin on request deleted text end new text begin that has filed an
agreement under subdivision 1a new text end 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 new text begin ; or, if the contribution is to a political party
unit, that the political party unit has signed an agreement to
limit independent expenditures as provided in subdivision 1a new text end .
The forms must provide duplicate copies of the receipt to be
attached to the contributor's claim. A candidate deleted text begin who deleted text end new text begin or
political party unit that new text end does not sign an agreement under this
section and deleted text begin who deleted text end willfully issues an official refund receipt form
or a facsimile of one to any of the candidate's new text begin or political
party units new text end contributors is guilty of a misdemeanor.

Sec. 14.

Minnesota Statutes 2004, section 290.06,
subdivision 23, is amended to read:

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 $50 and for a married couple,
filing jointly, must not exceed $100. 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 270.76.

(b) No refund is allowed under this subdivision for a
contribution to a candidate new text begin or political party new text end unless the
candidate new text begin or political party unit new text end :

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

(2) new text begin in the case of a candidate, new text end is seeking an office for
which voluntary spending limits are specified in section 10A.25;
and

(3) new text begin in the case of a candidate, new text end has designated a principal
campaign committee.

This subdivision does not limit the new text begin independent
expenditures of a political party unit or the new text end 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).

Sec. 15. new text begin INTERNET CAMPAIGN REPORTING AND PUBLIC SUBSIDY
PAYMENT STUDY.
new text end

new text begin A work group is established to study the feasibility of
creating an online campaign finance reporting and public subsidy
payment system. The work group must study the initial costs and
long-term savings of creating a system for filing online all
reports required by Minnesota Statutes, chapter 10A, and for
electronically making subsidy payments under Minnesota Statutes,
chapter 10A. The work group must report to the chairs of the
Civil Law and Elections Committee and the State Government
Finance Committee in the house of representatives and the chairs
of the Elections Committee and the State Government Budget
Division of the Finance Committee in the senate by January 15,
2006.
new text end

new text begin The work group shall consist of one member of the Campaign
Finance and Public Disclosure Board designated by the chair of
the board, and three members appointed by the governor, three
members appointed by the speaker of the house, and three members
appointed by the senate Committee on Committees.
new text end

new text begin The Campaign Finance and Public Disclosure Board and the
Department of Revenue must provide staff resources to the work
group.
new text end