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HF 3821

as introduced - 86th Legislature (2009 - 2010) Posted on 05/03/2010 11:05am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to campaign finance reporting; requiring reports; requiring disclaimer
on certain campaign material; modifying provisions related to independent
expenditures; appropriating money; amending Minnesota Statutes 2008, sections
10A.01, subdivision 18; 10A.02, subdivision 10; 10A.025, subdivision 4;
10A.20, subdivision 6; 211B.04; 211B.15, subdivision 3; proposing coding for
new law in Minnesota Statutes, chapter 10A; repealing Minnesota Statutes 2008,
sections 72A.12, subdivision 5; 211B.15, subdivision 12.

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

Section 1.

Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to
read:


Subd. 18.

Independent expenditure.

"Independent expenditure" means an
expenditure expressly advocating the election or defeat of a clearly identified candidate,
if the expenditure is made without the express or implied consent, authorization, or
cooperation of, and not in concert with or at the request or suggestion of, any candidate or
any candidate's principal campaign committee or agent. An independent expenditure is
not a contribution to that candidate. deleted text beginAn expenditure by a political party or political party
unit in a race where the political party has a candidate on the ballot is not an independent
expenditure.
deleted 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. 2.

Minnesota Statutes 2008, section 10A.02, subdivision 10, is amended to read:


Subd. 10.

Audits and investigations.

The board may make audits and investigations
with respect to statements and reports that are filed or that should have been filed under
this chapter. 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.new text begin An investigation initiated by the board pursuant to its authority
under this subdivision must comply with the procedures established in subdivision 11 for
investigating written complaints filed with the board.
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. 3.

Minnesota Statutes 2008, section 10A.025, subdivision 4, is amended to read:


Subd. 4.

Changes and corrections.

Material changes in information previously
submitted and corrections to a report or statement must be reported in writing to the board
within ten days following the date of the event prompting the change or the date upon
which the person filing became aware of the inaccuracy. The change or correction must
identify the form and the paragraph containing the information to be changed or corrected.

A person who willfully fails to report a material change or correction is guilty of a
gross misdemeanor and is subject to a civil penalty imposed by the board of up to $3,000.

The board must send a notice by certified mail to any individual who fails to file a
report required by this subdivision. If the individual fails to file the required report within
ten business days after the notice was sent, the board may impose a late filing fee of deleted text begin$5deleted text endnew text begin
$100
new text end per day up to deleted text begin$100deleted text endnew text begin $2,000new text end starting on the 11th day after the notice was sent. The
board must send an additional notice by certified mail to an individual who fails to file a
report within 14 days after the first notice was sent by the board that the individual may
be subject to a civil penalty for failure to file a report. An individual who fails to file a
report required by this subdivision within seven days after the second notice was sent by
the board is subject to a civil penalty imposed by the board of up to $1,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to reports
required to be filed on or after that date.
new text end

Sec. 4.

new text begin [10A.165] DECEPTIVE SOLICITATIONS PROHIBITED; PENALTY.
new text end

new text begin (a) A principal campaign committee, political committee, political fund, political
party unit, or other entity may not solicit a contribution or donation in a manner that
deceptively or falsely states or implies that the contribution or donation will not be used to
support or oppose a candidate for office or to support or oppose a ballot question. For
purposes of this section, a deceptive solicitation includes an offer to sell goods or services
that fails to disclose prior to the sale that the proceeds will be considered a contribution or
donation for political purposes and used in whole or in part to support a political campaign
or to make a political expenditure.
new text end

new text begin (b) A principal campaign committee, political committee, political fund, political
party unit, or other entity that knowingly violates this section is guilty of a gross
misdemeanor and subject to a civil penalty imposed by the board of up to $3,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
solicitations made on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2008, section 10A.20, subdivision 6, is amended to read:


Subd. 6.

Report when no committee.

new text begin (a) As used in this subdivision, "entity"
means an association, corporation, or partnership incorporated or registered to do business
in this state, a nonprofit organization that is exempt from taxation under section 501 of
the Internal Revenue Code, and any labor union with dues-paying members employed in
this state.
new text end

new text begin (b) new text endA candidate who does not designate and cause to be formed a principal campaign
committee and deleted text beginandeleted text endnew text begin any entity ornew text end individual who makes independent expenditures or
expenditures expressly advocating the approval or defeat of a ballot question in aggregate
in excess of $100 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 on the dates
on which reports by committees, funds, and party units are filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
expenditures made on or after that date.
new text end

Sec. 6.

new text begin [10A.201] 48-HOUR INDEPENDENT EXPENDITURE AND BALLOT
QUESTION EXPENDITURE REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Campaign material" has the meaning provided in section 211B.01, subdivision 2.
new text end

new text begin (c)(1) "Electioneering communication" means any campaign material that is publicly
communicated which:
new text end

new text begin (i) unambiguously refers to a candidate for public office;
new text end

new text begin (ii) is publicly communicated within 60 days before a primary election or within 90
days before a general election; and
new text end

new text begin (iii) is publicly communicated to an audience that includes voters subject to
representation by the public office to be elected.
new text end

new text begin (2) "Electioneering communication" does not include:
new text end

new text begin (i) news items or editorial comments by the news media, or letters to the editor
printed in a newspaper, magazine, or other periodical not owned or controlled by a
candidate or political party or aired by a broadcast facility not owned or controlled by a
candidate or political party;
new text end

new text begin (ii) communication by persons made in the regular course and scope of their
business or any communication made by a membership organization solely to members of
that organization and their families; and
new text end

new text begin (iii) communication which refers to a candidate only as part of the popular name
of a bill or statute.
new text end

new text begin (d) "Entity" means an individual, association, political committee, political party
unit, political fund, a corporation or partnership incorporated or registered to do business in
this state, a nonprofit organization exempt from taxation under section 501 of the Internal
Revenue Code, and any labor union with dues-paying members employed in this state.
new text end

new text begin (e) "Publicly communicated" means a communication or dissemination of campaign
material by means of a broadcast, cable, or satellite communication, newspaper, magazine,
outdoor advertising facility, mass mailing, telephone bank, personal delivery, Web site, or
any other form of distribution of campaign material to the general public.
new text end

new text begin Subd. 2. new text end

new text begin 48-hour report required; timing. new text end

new text begin (a) A report must be provided to the
board by an entity under this section if the entity:
new text end

new text begin (1) makes an independent expenditure that exceeds $5,000 to promote or defeat a
candidate for state office, or an expenditure that exceeds $5,000 expressly advocating
approval or defeat of a proposed state constitutional amendment; or
new text end

new text begin (2) engages in electioneering communication that, in the aggregate, represents an
expenditure that exceeds $25,000.
new text end

new text begin (b) A report must be provided to the board no later than 48 hours after the campaign
material or electioneering communication that is the direct result of the expenditure is
first publicly communicated. At a minimum, the report must contain the information
required as provided in subdivision 3. An entity may include information on more than
one expenditure in a single report, provided that the report must be submitted so that all
expenditures covered by the report meet the deadline for filing provided by this section.
new text end

new text begin Subd. 3. new text end

new text begin Contents of report. new text end

new text begin A report required under this section must include:
new text end

new text begin (1) the amount, date, and purpose of the expenditure;
new text end

new text begin (2) if an independent expenditure was made to promote or defeat a candidate for
public office, the name of the candidate and the office sought, the candidate's political
party affiliation, and whether the expenditure was made in support of or in opposition to
the candidate; and
new text end

new text begin (3) if an expenditure was made to advocate approval or defeat of a proposed state
constitutional amendment, a description of the proposed amendment, and whether the
expenditure was made in support of or in opposition to the amendment.
new text end

new text begin Subd. 4. new text end

new text begin Filing. new text end

new text begin A report that must be filed with the board under this section must be
filed electronically and is otherwise subject to the filing requirements provided in section
10A.025 and the filing deadline provided in this section. The board shall post a copy of a
report received under this section on the board's Web site.
new text end

new text begin Subd. 5. new text end

new text begin Administrative penalty. new text end

new text begin The board may impose an administrative
penalty against any entity that violates this section in an amount up to four times the
amount of the expenditure that results in the violation. One-half of any administrative
penalty assessed under this section must be deposited in the general fund of the state
treasury. The remaining amounts from administrative penalties assessed under this section
must be deposited in a special revenue account and are appropriated to the board for
the enforcement of this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
expenditures made on or after that date.
new text end

Sec. 7.

new text begin [10A.205] CORPORATE POLITICAL ACTIVITY; NOTIFICATION TO
SHAREHOLDERS AND PUBLIC REPORT REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "corporation" means any corporation incorporated or registered to do business in
this state, and any partnership registered to do business in this state; and
new text end

new text begin (2) "shareholders" means: (i) in the case of a corporation registered to do business
in this state, all shareholders of the corporation residing in the state; (ii) in the case of a
corporation incorporated in this state, all shareholders of the corporation; and (iii) in the
case of a partnership registered to do business in this state, all partners.
new text end

new text begin Subd. 2. new text end

new text begin Notification to shareholders. new text end

new text begin (a) At least quarterly, a corporation that
directly or indirectly makes a contribution or expenditure must notify the corporation's
shareholders in writing of the nature of its contribution and expenditure activity during
the previous quarter. For purposes of this section, a corporation makes a contribution or
expenditure if the contribution or expenditure is funded through its general corporate
treasury, a separate segregated fund, or any other entity or account established and
controlled by the corporation.
new text end

new text begin (b) A notification required by this section must contain:
new text end

new text begin (1) the date of the disbursement and amount of each contribution and expenditure;
new text end

new text begin (2) if the contribution or expenditure was made to support or oppose a candidate for
public office, the office sought by the candidate, the candidate's political party affiliation,
and whether the contribution or expenditure was made in support of or in opposition to
the candidate;
new text end

new text begin (3) if the contribution or expenditure was made to support or oppose a ballot
question, a description or the purpose of the ballot question, and whether the contribution
or expenditure was made in support of or in opposition to the question; and
new text end

new text begin (4) if the contribution or expenditure was made as part of an issue advocacy
campaign, the nature of the issue and the corporation's position on the issue.
new text end

new text begin (c) A corporation required to provide a notification to shareholders under this section
must make a copy of the notification accessible on the corporation's Web site for at least
one year following the date of the notification.
new text end

new text begin Subd. 3. new text end

new text begin Public report. new text end

new text begin A corporation required to provide a notification to
shareholders under this section must provide a copy of the notification to the board,
subject to the requirements and penalties provided in section 10A.025 for filing reports.
The board must maintain a copy of each shareholder notification received under this
section on the board's Web site.
new text end

new text begin Subd. 4. new text end

new text begin Annual audit. new text end

new text begin On an annual basis, the board shall randomly audit the
extent of compliance or noncompliance by corporations required to provide shareholder
notification under this section. No later than June 30 of each year, the board shall submit a
report to the legislature on the results of audits conducted in the preceding year. An audit
required by this subdivision shall be conducted in the manner provided for audits and
investigations by the board under section 10A.02, subdivision 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
contributions and expenditures made on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2008, section 211B.04, is amended to read:


211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.

new text begin Subdivision 1. new text end

new text begin General requirement; definitions. new text end

(a) A person who participates in
the preparation or dissemination of campaign material other than as provided in section
211B.05, subdivision 1, that does not prominently include the name and address of the
person or committee causing the material to be prepared or disseminated in a disclaimer
substantially in the form deleted text beginprovided in paragraph (b) or (c)deleted text end new text beginrequired by this section new text endis guilty
of a misdemeanor.

deleted text begin (b) Except in cases covered by paragraph (c), the required form of disclaimer is:
"Prepared and paid for by the .......... committee, .........(address)" for material prepared
and paid for by a principal campaign committee, or "Prepared and paid for by the ..........
committee, .........(address), in support of .........(insert name of candidate or ballot
question)" for material prepared and paid for by a person or committee other than a
principal campaign committee.
deleted text end

deleted text begin (c) In the case of broadcast media, the required form of disclaimer is: "Paid for by
the ............ committee."
deleted text end

deleted text begin (d) Campaign material that is not circulated on behalf of a particular candidate
or ballot question must also include in the disclaimer either that it is "in opposition
to .....(insert name of candidate or ballot question.....)"; or that "this publication is not
circulated on behalf of any candidate or ballot question."
deleted text end

new text begin (b) As used in this section, the following terms have the meanings given:
new text end

new text begin (1) "association" has the meaning given in section 10A.01, subdivision 6;
new text end

new text begin (2) "political committee" has the meaning given in section 10A.01, subdivision 27;
new text end

new text begin (3) "political fund" has the meaning given in section 10A.01, subdivision 28;
new text end

new text begin (4) "political party unit" has the meaning given in section 10A.01, subdivision
30; and
new text end

new text begin (5) "principal campaign committee" means a principal campaign committee formed
under section 10A.105, or a committee formed at the direction of a candidate who is
subject to reporting under chapter 211A.
new text end

new text begin Subd. 2. new text end

new text begin Candidates; candidate's principal campaign committee. new text end

new text begin The required
form of disclaimer for campaign material prepared or disseminated by a candidate or a
candidate's principal campaign committee on behalf of the candidate is: "Prepared and
paid for by the ....... (name of candidate or committee), ....... (address)." If the material is
prepared or disseminated by a principal campaign committee, the disclaimer must also
state: "......... (name of candidate) has approved the content of this material."
new text end

new text begin Subd. 3. new text end

new text begin Political committees, political funds, and party units. new text end

new text begin (a) The required
form of disclaimer for campaign material that advocates nomination, election, or defeat of
a candidate for office and is prepared or disseminated by a political fund, political party
unit, or a political committee that is not a candidate's principal campaign committee, is:
"....... (name of entity), ......... (address) is responsible for the content of this material. This
material was created in ....... (support of/opposition to) ......... (name of candidate(s))."
If the campaign material constitutes an independent expenditure under section 10A.01,
subdivision 18, the disclaimer must also state: "This material is not authorized by any
candidate or candidate's committee."
new text end

new text begin Subd. 4. new text end

new text begin Other committees, associations, and certain individuals. new text end

new text begin The required
form of disclaimer for campaign material that advocates the nomination, election, or
defeat of a candidate for office and is prepared or disseminated by a committee that is not
otherwise subject to the provisions of subdivision 2 or 3, an association, or an individual
who is not exempt under subdivision 6, is: ".......... (name), .......... (address) is responsible
for the content of this material. This material was created in ......... (support of/opposition
to) ........ (name of candidate(s)). This material is not authorized by any candidate or
candidate's committee."
new text end

new text begin Subd. 5. new text end

new text begin Ballot question campaigns. new text end

new text begin The required form of disclaimer for campaign
material that advocates approval or defeat of a ballot question, when the material is
prepared or disseminated by a principal campaign committee, political committee,
political fund, political party unit, corporation, association, or an individual who is not
exempt under subdivision 6, is: ".......... (name), ............. (address) is responsible for
the content of this material. This material was created in ........ (support of/opposition
to) ............. (name of ballot question)."
new text end

new text begin Subd. 6. new text end

new text begin Exemptions. new text end

deleted text begin(e)deleted text end new text begin(a) new text endThis section does not apply to objects stating only
deleted text begin thedeleted text end new text begina new text endcandidate's name and the office sought, fund-raising tickets, or personal letters that
are clearly being sent by deleted text beginthedeleted text end new text begina new text endcandidate.

deleted text begin (f)deleted text endnew text begin (b)new text end This section does not apply to an individual deleted text beginor associationdeleted text end who acts
independently of any candidate, candidate's committee, political committee, deleted text beginordeleted text end political
fundnew text begin, corporation, or association,new text end and spends only from the individual's deleted text beginor association'sdeleted text end
own resources a sum that is less than deleted text begin$500deleted text endnew text begin $5,000new text end in the aggregate to produce or distribute
campaign material deleted text beginthat is distributed at least seven days before the election to which the
campaign material relates
deleted text endnew text begin that does not violate section 211B.06new text end.

deleted text begin (g)deleted text endnew text begin (c)new text end This section does not modify or repeal section 211B.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
campaign material prepared or disseminated on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2008, section 211B.15, subdivision 3, is amended to read:


Subd. 3.

Independent expenditures.

A corporation may not make an deleted text beginindependentdeleted text end
expenditure or offer or agree to make an deleted text beginindependentdeleted text end expenditure to promote or defeat
the candidacy of an individual for nomination, election, or appointment to a political
officenew text begin unless the expenditure is an independent expenditurenew text end. For the purpose of this
subdivision, "independent expenditure" means an expenditure that is not made with the
authorization or expressed or implied consent of, or in cooperation or concert with, or
at the request or suggestion of, a candidate or new text beginthe candidate's new text endcommittee deleted text beginestablished to
support or oppose a candidate
deleted 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. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 72A.12, subdivision 5; and 211B.15, subdivision
12,
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 the day following final enactment.
new text end